Remortgaging from Abbey Flexi Plus?

MarxOne

Hello,

My current mortgage is an Abbey Flexi Plus which tracks 0.49% above the base rate. In an ideal world I would like to keep this but I need to be able to access funds readily at an undetermined date in the future. To meet my needs I have asked for a mortgage that has a drawdown facility attached. I would like to be able to drawdown up to £75000.

My mortgage broker has just offered me a remortgage with the B of S which is fixed at 6.49% for two years and comes with a £1295 arrangement fee. My broker has told me that I cannot remortgage with the same lender.

Questions:

1) Why am I not allowed to remortgage with the same lender?

2) I thought I might be able to drawdown my existing mortgage as its a 'flexible' mortgage. When I looked at my original papers it states that my credit facility is 0%. Why am I not allowed to increase my credit facility and drawdown on this mortgage?

Property Details:

Value £450000
Equity £190000

Many thanks!

jill2002

Why not ask Abbey if you can arrange a Flexi Credit Limit Review on your existing Flexi Plus mortgage - no need to remortgage onto a higher rate - you can get the extra borrowing on the same rate that your existing mortgage is on. Costs £65 plus you may also need to have a new valuation done at a cost of £55.

herbiesjp

Technically the broker is right - you do not re-mortgage with the same lender, it's either a product switch or further advance

However as Jill rightly says, call Abbey.

That is the benefit of a flexible mortgage - they should be able to increase your limit (assuming your income is sufficient) which you will be able to draw down at any point in the future that you want. If you registered for the on-line facility you can do it all yourself as well

5.49% is better than 6.49%!

MarxOne

Many thanks..I will give Abbey a ring.

melvis

A bit of a late reply I know ... the Flexi Plus mortgage does not have available funds to drawdown but any overpayments you have made will be in the savings pot and as far as I know you can withdraw from these funds at any time, similar to a drawdown but you have to have had paid the funds to the mortgage beforehand.

HelpWhereIcan

There is only one way that your broker is right to advise you to switch lender ... if the Abbey are not willing to entertain an increase in your facility whether due to your income or curent commitments.

The Abbey Flexi mortgage does allow a facility that can be drawn down at anytime and unlike others will charge the facility at the same rate as the rest of your mortgage.

I have the same Abbey Flexi deal as you and have increased the facility on my own. When you call them you will need to go through a half hour "mortgage interview" with one of their telephone advisers in Bradford but the process is relatively simple.

Income allowing there is no reason why Abbey will not increase your facility by £75k as you will still be looking at having less than 75% Loan to value.

Assuming he does not know something we don't about your income etc I would take great care with anything this broker tells you - appears to be a case of looking after his own commission rather than your interests - especially when you consider how flexible this deal is and how generous Abbey can be with income.

Check with Abbey before you do anything else.

Just noticed how old the OP is - hopefully this has been resolved by now.