Mortgage - additional borrowing with Nationwide

biggoatyman

We have a £160k tracker mortgage with Nationwide, with 14 years left to run. We'd like to borrow another £100k to fund an extension.

Ideally we'd like to consolidate this into a £260k mortgage over 20-25 years, but if I understood them correctly, Nationwide say we have to take out a separate mortgage account for the extra £100k and it can't have a longer term than our existing mortgage (14 years). This would make the combined repayments too high for us.

Do any of you Moneysavers have experience of borrowing extra funds and simultaneously extending your mortgage term ? We don't really want to change lenders if possible.

Help/advice much appreciated.

thanks

_Andy_

Any reason you don't believe what Nationwide have told you?

biggoatyman

I believe them, I just wondered if it was the norm.

_Andy_

It varies lender to lender

lizzie_dripping

I borrowed a sum last year from Nationwide for the same reason.

Each loan has an individual account number and the payments are collected separately however the repayment further advance is over a longer term than thej interest only main loan.

We also elected to take the further advance on the BMR so that we had the flexibilty to remortgage to another lendor without penalty when our tracker rate ended a few months later. We ended up taking another Nationwide tracker but there would only have been one product fee payable to transfer both loans onto it (we transfered during the period when Nationwide were waiving the fees for existing borrowers).

Our advance was approved within 7 days once we had submitted the signed application form but we had a low LTV and income multiple.

One thing worth considering is that the £500 overpayment limit may be allowed for both loans, allowing you to overpay by up to £1000 per month. I haven't checked this however as I can't overpay by that much atm!

Girl_least_likely_to

biggoatyman wrote: »

Nationwide say we have to take out a separate mortgage account for the extra £100k and it can't have a longer term than our existing mortgage

This was exactly the case for us when we took out a 2nd Nationwide mortgage on our property to fund an extension. Thankfully we could afford the repayments as the value of the 2nd loan was "only" 30K and over 19 years.

cranezoe

we're porting our mortgage of £100k and borrowing an extra £30k. we have to take the 30k seperately so opted for a tracker. nationwide said we can switch and fix it when ourbigger mortgage deal comes to an end in Nov so we can merge the two together.

not sure on the years bit though.

I guess you could look at remortgaging the whole lot - get a deal for the £260k and set it at 25years? you'd have to pay any ERC due but it would make the payments affordable?