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Re-Mortgage vs. Additional Borrowing
scotslad1983
Posts: 98 Forumite
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
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
0
Comments
-
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.0
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