Moving house, additional money, new mortgage?

svds

Hello Forum!

We have a fixed rate mortgage of 95K at 5.09% with Lloyds(C&G), due to expire at the end of Dec 2008.
We are considering moving to a new house before December that would require additional borrowing of 30K. Previously we were told that this could be borrowed on Lloyds SVR until Dec 2008 when we would remortgage.

On phoning Lloyds yesterday we were told that this is no longer possible and that we would have to take out a new mortgage product for the 30K (+ arrrangement fee and new term etc) or face paying an early repayment charge (£950) on our existing mortgage in order to lump everying together.

Does anyone have any suggestions on the best strategy? Is a personal loan a viable option?

Thanks in advance!

getmore4less

If you have not yet got a buyer the chances are you may struggle to move by Dec anyway

http://www.lloydstsb.com/mortgages/homeowner.asp

says no application fees, use any of the standard offerings

But it looks like there are no offerings that are penalty free.

svds

Yes, we're fully aware of the market situation, hence we're eying up an p/x deal and have our house valued today or tomorrow.

Indeed, there's no application fee (£99) but there are the usual arrangement fees in excess of £995.

Existing Lloyds/C&G customers can no longer borrow additional money for SVR when moving house and will have to choose one of their standard products.

Since our main (currently sole) mortgage (with a good rate until dec 08!) is with Lloyds, other mortgage providers we have contacted insist we move the £95K to them as well.

It's silly (imho) to apply for a new mortgage when we have to remortgage in 3-4 months time anyway, i.e. why have two morgages, with two different terms, fees, etc running concurrently with a 3 month 'stagger'?

Hence the question whether to wait until dec 08 to avoid the redemption penalty (£950) and borrow the required extra £30K with a personal loan/very-short-term mortgage/other products we're not aware of?

Any words of wisdom?

svds

Has anyone got any experience with moving house and having to borrow additional money?

Thanks!