Remortgaging, requiring advice

Botswana_3

My mortgage has 16 years to run and the current deal runs out at end of October. Mortgage is £88k and I need to borrow a further £22k to consolidate other debt. House worth c. £240k based on local sales of similar property.

Went to current lender (LloydsTSB/C&G) who are offering me a 2yr deal. Weird thing is - they want to split the borrowing and offer me one rate on current borrowing (6.34%), and offer me a higher rate (7.19%) on the new borrowing (because it's <£50k). Is this normal? Why can't they lump it all in one? Also, the new SVR (6.5% from Nov 1st) looks very similar to the 6.34% deal - should I wait to see if fixed rates come down, and try to survive on SVR for a month? (Prob. not - this means paying to credit cards for another month)

Abbey (via L&C - nice people) are offering better rates (5.74%) over 3 yrs though there are some small fees. Biggest hurdle is the time things take - 6 weeks to arrange means I will have to go on SVR for a while with the Lloyds while other debt (mostly c.card) needs feeding.

Dilemma - should I wait for the Abbey deal to go through, or jump into the Lloyds deal and pay off that other nasty debt asap? My head hurts now.

feisty1

Yr LTV is quite low 45% which is good as this could normally be fast tracked with some companies as long as u fit criteria See an independent adviser, they will know who fast tracks and what service levels are like for quick completion. However with the way things are at the moment and mortgage companies cutting back on servicing staff be prepared for a month on SVR. I agree with u re Llyods antiquated way of calculating, just confuses clients.

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

Botswana_3

Thanks feisty. I was a day late confirming the Abbey deal and the Lloyds guy came through with a cheaper deal! Thought we'd miss it when he couldn't make a meeting (strangely, his bank was the victim of an armed raid that day) but we got 3 years fixed at 5.64% for the main part of the debt, variable rate tracker for the new borrowing, all of which puts monthly paymentns in the right ballpark. For once, my prevarication paid off! One month on SVR, but it's still less than what our monthly payment will be and I get to pay off the credit cards now.

Goodbye nasty insidious accelerating CC debt, hello manageable mortgage. Now to keep it that way.