Borrowing more??

[Loobylou1987]

Hi we are extending and looking into borrowing more 20k basically, so we’ve been told this is fine but we’d have to reduce our term to 26 years, which takes normal payment up by 75 a month. Then the additional borrowing will be 120. Interest rate is 3.9 max and lowest 3.4 I found this to be really high? Is this normal for further borrowing, my partner has no debt etc and a good wage I’m just wondering why the interest rate is high anyone know 😂

Does seem quite high. We've just remortgaged for home improvements and have got a rate of 1.something% We couldn't believe quite how low the rate was tbh.

What's your current mortgage rate? Are you remortgaging and adding 20k on with same lender or is the 20k a second charge loan? Is 3.9% the Apr rather than the flat rate? 3.9% is very high in the current climate.

Our normal rate is 2.4 percent. And that is high I think we took it out 3 years ago tho. We’re going with same mortgage company as we’re fixed in.

It’s a second charge one as we’re stuck in. I’m contemplating asking how much to get out and how much for it all as one. Not sure if it makes a difference, I’m not sure why the rate is so high it’s confused me I used to work with mortgage years ago but after they had been completed.

2.4 is more acceptable depending on how long you fixed for. Are they expecting your to remortgage the whole amount onto 3.9%? Assuming nothing is wrong with your credit file I would look elsewhere.

Ah cross post, I would see what you can get elsewhere. Does it have to be secured lending? You can get 20k unsecured over 7 years for less than 3.9%. It's very cheap to borrow at the moment.

So what he and to do was reduce term to 26 to the age of 65 as o it existing was 70 I think? So that went from 520-598. Then the new amount 20k was per 26 years at 130 a month max. But said lowest rate is 3.4 so I’ve asked my partner if they’ve said why it’s that and he said no, like idk why it’s that no one comes to value yet, so no rate officially but he’s said lowest was 3.4 that’s why I’m confused cos that’s really high still. My partner is rubbish with stuff like this but it’s in his name as I’m self employed so i can’t be on it yet. All very stressful feel like
I should’ve taken out a loan for the work instead 😂 we’re ringing them back so he can ask.

Just rang them he said cos it’s a second charge further borrowing have higher rates I just looked at Barclays and they’re around 3 percent for further borrowing. He said if it was a normal mortgage and no seperate borrowing it all be a low amount.

Do you need to put it on the mortgage? You could get a personal loan with m&s for 2.8% for £10k. bank.marksandspencer.com/personal-loans/

It usually isn’t wise to put extra on the mortgage as it is secured against your house.

Obviously you’ll pay more a month with a personal loan as it is paid quicker but you will pay a lot less interest as it is paid more quickly.

We’re wanting 20k and that’s like over 300 a month xx