Remortgage or change lender?

catford

I am fortunate enough to have a small amount left on my mortgage at a very low rate because my deal just ended, but I want to borrow some more for home improvements:D
My existing lender will give me the extra but wants to add the amount to my existing outstanding amount and increase the interest on the whole loan.:eek:
How can I keep the remaining amount at the existing low rate and borrow extra on a separate deal at the higher rate --is this possible?
Any advice please?

luckyfool

eh, have you asked them for a "further advance", if thats the case there should be no reason that your main mortgage rate would change at all.

opinions4u

A remortgage by its nature involves changing lender.

You should post:
Value
Current Balance
Amount you want to raise
Current lender
Rate your existing debt is on
Rate your additional loan if you take it
Remaining term

Then people can be more helpful.

catford

luckyfool wrote: »

eh, have you asked them for a "further advance", if thats the case there should be no reason that your main mortgage rate would change at all.

No..I didn't know that I could ask for a further advance. I am with the Coventry and have been happy with the service. I thought that I would have to use the remortgage facility.;)
So it seems that asking for a further advance is the way to go??

adandem

If you current deal has just ended and you want another deal then the whole amount would be at a new rate.
However, if the original loan is on a discounted rate, only the further advance will be at a different rate.