Re-Mortgage vs. Additional Borrowing

scotslad1983

Hi all,

The end of my two year fixed rate is nigh.. :j

I currently owe £76k on a £150k property.. would like to increase this to £88k to pay off debt and make improvements.

Phoned up my current suppliers, RBS, and asked about this. They keep on trying to put me through a credit check, which I'm not keen on doing quite yet (I've read elsewhere it can damage my credit score regardless).

Should I be getting offered the same interest rate on the additional £12k? I'm keen to tie in to possibly a five year rate at sub-4% while it exists, but I don't want to fix the mortgage at 3.99, and get additional borrowing at 5-6%! If I could get the whole lot at 3.99% I'd take it.

Can anybody in a similar position tell me what is likely to happen? Also, why do they seem unable to just keep it as a mortgage payment? They seem to be very keen to have it noted and separated as additional borrowing.

Many thanks

beecher

If your fixed rate is coming to an end you can go anywhere for a new fixed rate - I don't think RBS are the cheapest for under 60% LTV. You could go to a mortgage adviser and see what's about, though I don't know if there are any sub 4% deals about at the moment.