Mortgage/Additional Borrowing

blues_r_best · 25 Jun 2013 at 12:20

Currently have my mortgage with Santander but am looking to borrow more to pay for double glazing and other home improvements (between £10,000-£12,000 in total). I've spoken to them and they will offer me an additional loan for the extra money at a much higher rate than my mortgage.

I was under the impression that, with no problems, I would be able to just increase the total of my mortgage rather than taking out the extra loan? Is this standard practice?

I'm got four months left on my current deal, so I guess I could just ask other banks for a mortgage of the total amount.

PapaLazaru · 25 Jun 2013 at 12:33

Rates have gone up, so they will not lend on the same rate as your mortgage. Plus you are still tied in for a short period of time. I would just wait for four months and then remortgage the lot.

blues_r_best · 25 Jun 2013 at 13:12

Just a bit disappointed as I'd like the money now so I could get the double glazing sorted before winter.

Thanks for the advice.

Jez · 25 Jun 2013 at 13:25

You will certainly need to re-mortgage to do this, just to re-enforce the situation

HangTime · 25 Jun 2013 at 17:57

Standard practice definitely isn't what you've suggested, just being handed extra cash at the rate of your existing mortgage otherwise everyone who was on a cheap rate would be filling their boots (I'd borrow as much as they would let me have as I could earn more in savings accounts than the cost of the mortgage!).

My recommendation would be to let your current deal expire and have a remortgage lined up ready.

ci_newman · 25 Jun 2013 at 18:44

AFAIK this is normally only possible if you have been over-paying your mortgage, and not many lenders offer it (e.g. "One" accounts)