Hi,
I'm 1 year into a new mortgage of 270k for our family home. We're delighted with where we are living, and the house is a 1970's 3-bed semi, in a nice estate - crying out for upgrading.
We've priced an extension and would be looking at spending 70-80k, hopefully early 2017.
My question is how should I fund this.
Our current mortgage repayment is 1245 p/m, and we've been lucky enough to be able to save about 500 p/m into the credit union.
The reason we were putting the 500 p/m away was to show that we could repay a loan from the Credit union - to fund the extension (and also to try to build up our savings)
But, should I not just overpay my Variable rate mortage by 500 p/m - and then next year (2 years into the mortgage) - apply for a re-mortgage to fund the home improvements?
The credit union allow you to borrow over a max of 10 years @4.25%, but with a re-mortgage - this could be spread over 25 years or so.
Just looking for advice on which is the better route.
Thanks
I'm 1 year into a new mortgage of 270k for our family home. We're delighted with where we are living, and the house is a 1970's 3-bed semi, in a nice estate - crying out for upgrading.
We've priced an extension and would be looking at spending 70-80k, hopefully early 2017.
My question is how should I fund this.
Our current mortgage repayment is 1245 p/m, and we've been lucky enough to be able to save about 500 p/m into the credit union.
The reason we were putting the 500 p/m away was to show that we could repay a loan from the Credit union - to fund the extension (and also to try to build up our savings)
But, should I not just overpay my Variable rate mortage by 500 p/m - and then next year (2 years into the mortgage) - apply for a re-mortgage to fund the home improvements?
The credit union allow you to borrow over a max of 10 years @4.25%, but with a re-mortgage - this could be spread over 25 years or so.
Just looking for advice on which is the better route.
Thanks