Increasing mortgage

zentay

We are planning a conservatory for our house and need to increase our mortgage by around 20K to fund this.

House value is more than £135K
Current mortgage for £58K

I remortgage with Scarborough BC in January 2004 via London & Country which has tie ins until January 2006. it would cost £1200 to move lender.

I have asked Scarborough BC to give me a quote on the adding the extra £20k, and they are quoting me with their Variable Mortgage rate which is 6.44%.

I think this is a bit mean as they only have to do minimal work and they are charging me top dollar. Can I go back to them to see if they will offer any other deals or is this it.

Does anyone out there have a better strategy perhaps?

Mortgageman

What's your current rate / term - repayment or interest only?

Your options are -

1) Go back to the Scarborough again and see whether they will haggle - however, they have you a bit over the barrel so there is no need really for them to change their mind

2) Contact us (L&C) again - we will do the sums to see which is better - staying with Scarborough or remortgaging the whole amount to another lender (and paying the penalty)

I suspect that your best option will be to stay with Scarbough until your pens expire (but with out crucnching the numbers I can't be sure) - make sure any top up borrowing is on a penatly free basis.

zentay

Well I got a result !!!

I had to go with the offer they gave me (their standard variable rate). but I kept asking staff if I could get a better deal. I got refused twice, but on the 3rd ocassion they came back to me offering me 1.5% over the BOE rate which works out at 0.5% lower than what they were offering.

persistance !

Mortgageman

make sure any top up borrowing is on a penatly free basis.

did you?

zentay

yes the extra is on a no penalty basis. I can make overpayments or even pay it off.