Remortgaging : am I stuffed here?

bernieross12

I've got a 74,000 mortgage on a house that's worth 350. The three year discount has come to an end, and I'm now happily on C+G's SVR at just 2.5%.

So far, so good. They gambled, I've won. Three years ago, nobody expected the SVR to be this low.

Now I want to borrow an extra 60 for an extension. C+G realize that they've got me, as I can't borrow from two different providers on the same property. ie - I can pay them off and borrow 134,000 elsewhere at a reasonable rate, something around 3.13%. Or C+G can match the overall monthly payments that would entail. They can't touch the original 74,000 deal which I'm paying off at 2.5%, so they're trying to charge me 4.39% (3.89 above BoE base) for the extra 60,000! There is NO WAY they'd try to charge this to a new customer wanting to borrow 60,000. In effect, I'm being penalized for being an existing customer rather than a new one.

Any solutions?

nick1977

Does seem a bit unfair given that they offer better value deals on their website. You could try to talk to them about other options and see what they suggest.
Other than that I think the only solutions are those you already mentioned. Move to another provider, or take the new deal. If you took the addional funds from C+G you could make any possible overpayments against that loan first, which might help to minimise the impact.

Nick

getmore4less

You should be eligable for these deals

http://www.cheltglos.co.uk/mortgages/existing-customers/borrow-more/

2y fix @4.99% £495 fee
3ytracker @3.89% £895 fee

Unless I am looking wrong these are better than new borrowers get, same rate lower fees so I do not see a problem.


Change the 2.5% loan to interest only and overpay the higher rate if you take it, adjust the term on the extra borrowing if overpayments not allowed.