Quick question about borrowing for an extension when you have a mortgage in place

stolt

Jsut applying for a mortgage with A&L i have the option of borrowing more when applyign for an extension or is this something that could be done 6 months down the line. Would that cause me problems if i already have a fixed rate with A&L in place and then want to borrow more 6 months down the line.

koexelek

I'd be tempted to take the money now

1) they might not still let you have it in six months time
2) if they do, they might force you to take it on a really rubbish rate ( as by then, you will be tied in to them)

stolt

koexelek wrote: »

I'd be tempted to take the money now

1) they might not still let you have it in six months time
2) if they do, they might force you to take it on a really rubbish rate ( as by then, you will be tied in to them)

thanks, thats was my thinking too, especially with the rates so low and then i didnt understand how it all worked when there was a 5 yr fixed rate on the mortgage already by then.

koexelek

Your five year fixed rate would be unaltered, but the remaining borrowing would have to be on one of their "further advance" rates, which will usually be uncompetitive. You would also more than likely be looking at yet another arrangement fee for the further advance as well

pingu2209

C&G doesn't allow you to borrow more for 6 months after taking out the money. It could be A&L go down that same route.