When borrowing more on mortgage, whats best? fixed/variable/tracker?

Question

Was going to borrow 5k on the mortgage but unsure which rate to borrow on. If i borrow on fixed rate, when i decide to move mortgage company i cant move the extra loan can i beacause it would be fixed for 5 years? my mortgage is still fixed for a another 3 years yet.

Answer 1

Depends on a million factors, better off emailing your bank. Good luck

Answer 2

If you have Excel, you can use the PMT function to tell you what your monthly would be based on: - Loan Amount - Repayment or Interest-Only - Reapyment period in years - Prevailing Interest Rate You must then (and this, a lot of people forget) factor in the additional mortgage costs like arrangement fee (can be £10k!!), Valuation Fee, Transfer Fee, etc That's why the oft-quoted "APR" figure (eg 7.11%) is higher than the mortgage rate (eg 6.54%)

Answer 3

it really depends, you can always move the extra borrowing to another company, its just that if its a fixed rate there might be an early redemption penalty. if its fixed then if theres an increase in the base rate then your rate wont increase but if it drops urs wont go down. if its variable or tracker it will mirror the changes in the base rate but you wont be penalised when u change lenders, but check with your lender cuz NOT all fixed rates have penalties.

Answer 4

Get a HELOC it will be variable but you could get a HEL to get it fixed if you like. When you sell all mortgages need to be paid off so the term doesn't matter unless they have a prepayment penalty.
Refinancing to get cash out is much to expensive for $5,000 so you do need a second mortgage.

Answer 5

If its only 5k I would definitely not refinance or get a heloc. If your credit is good I would put it on a credit card that had a rate of 1 1/2 % or less for the life of the loan.
But only you know your finacial situation

Answer 6

an unsecured loan is better at this stage as you are tied in. then if you move you can pay off the loan or add it to new mortgage