Additional borrowing on Mortgage

[scoobydooby]

Have decided it's time for a new car (well actually the old one made that decision). Have just applied for a loan which is all okay but haven't signed the paperwork yet! However, would it be better to borrow additional money on my mortgage? We currently have approx �70,000 equity. I can't find anything on the website of my mortgage lenders and they're closed today but aren't you limited to what you can borrow the money for? For example, will they say no because it's a car I'm after and it's not connected to the property itself?

[kazza12345]

the thing is, how much have you got left on your mortgage? If its a longish time, would you want to be stuck paying for a car say for 15 years? or 20? Unless you have a really really good rate, you can get loans for reasonable rates if you shop around, and have it paid off in three years or so. I dont think they actually check what you spend the money on so you could say it was for home improvements

[Mrs_Pegasus]

An equity loan on a house is where you borrow against the equity and its then put onto the existing mortgage. So like the previous reply said, if you are looking at 10-15 years left on your mortgage then it would make a very expensive car!

Have you shopped around for the best loan deal. moneysupermarket.com is a useful site for finding the best loan deals around.