How to finance extension?

[LaChaiseVerte]

We are thinking of either extending out of the back of our house/kitchen, or converting our loft. We think we will need to borrow 25k for either.

Our current mortgage is an amazing offset tracker that we would not want to lose really - we are making real inroads into paying it off while interest rates are so low BUT we will need to raise the 25k for works. So, do we get a second mortgage and run them alongside? Or do we get a normal loan? Or lose our fab rate and combine into a new mortgage? Does anyone have any tips - we're v new to all this!

Can you just borrow more on the same mortgage? If you've paid lots off and have good equity, you might be able to just add it on (we could on our mortgage so I know it's possible)

I did ring about that a couple of years ago, and they said it would change the terms of our existing mortgage ie they would remove the offset facility - and charge us a hefty product fee, which put me off. I could ring them again I suppose. I just wondered if we were paying such a big sum to get an additional mortgage, whether we'd be better paying that elsewhere to get a better deal and not lose our offset. I just don't know if that's even possible?!

That sounds an amazingly cheap conversion or extension, apologies if I've got that wrong and you have other savings. Have you had quotes or are these your guesstimates?

Yes, sorry, that is in addition to savings. We've had 2 very similar quotes.

Does anyone else have any thoughts? How do most people do these things?

I didn't want to involve mortgage company in changing amount of our mortgage (which is a fixed rate anyway) to fund our kitchen refurb/reconfig of ground floor so just got a personal loan for 4 yrs for £23K from a high st bank. Took about 2 mins to type in the details online and was approved in the time it too the webpage to refresh. I can pay it back faster so will have it paid off in two years - very convenient. Would definitely do it that way again even though the interest rate is higher than the mortgage rate, just for the flexibility and ease.

Ah ok, thanks for that Claudia, I've been put off by the interest rates and we wouldn't be able to pay it off that quickly, but will have a look.