Extending mortgage - is this a rubbish offer from the BSoc?

thetigerwhocametotea

We were hoping to extend our mortgage by £25k for work to our house and garden. The extra borrowing has been approved no problem as we have over £200k equity in the property.

However, the best the West Brom will offer us on the extra borrowing is 5.84% variable. The rest of our mortage is currently tracking the BofE base rate +.99%. The idea was to over pay as much as possible on the extra £25k while we are paying so much less on the 1st part of our mortgage, but I can't help but think that 5.84 seems very high - and presumably the variable rate will continue to rise?

Thought we might have got a better deal but computer says no.

Any ideas?

TEDDYRUKSPIN

If you have been keeping track on the board you will have noticed what all advisors are trying to tell you. Many companies are doing their best to get people to fix their mortgage in order for the customer not to move. They are at this current moment losing out on variable rate mortgage as some lucky people are paying no interest or like you 0.99%.

As your additional money required will be termed a further advance, they can charge you as much as they want. In your case, in the region of a secured loan.

How much do you owe on your main mortgage? Could you pick a 2 years fixed on the extra loan and over pay on the main tracker mortgage first? And when the time comes pay off the 2 years fixed once the fixed rate converts to the standard variable rate?

I suggest you pop back in and ask for a multitude of IDD quotes.

thetigerwhocametotea

Sorry Teddy I am probably being a bit thick here but I don't grasp what you are saying.

We owe about £190k on main mortgage. Surely if we could have 2 years fixed on the extra loan they would have mentioned this?

I am about to e-mail 'my personal advisor' (ha ha) at the WestBrom tonight - what should I be asking him?

What are IDD quotes?