Nationwide mortgage - additional borrowing

troubleonline

We want to borrow an additional £5K on our mortgage for some home improvements. We have 2 mortgages on our house - the 2nd one we took when we moved house 2 years ago to cover the existing borrowing required. One is a base rate tracker deal and the other is a fixed rate deal - both expire next summer.

My questions is can we borrow the extra money we want on one of the existing mortgages without having to negotiate a new mortgage?

I thought we could but having just looked at the Nationwide website am not so sure!

NB - combined LTV of both mortgages are around 62% of current home value so there are no issues re borrowing too much against the house

Cheers

troubleonline

No need to answer - managed to speak to Nationwide this morning - we need to take a small additional 3rd mortgage which is fine.

Mrs_Bumble

With such a small amount to borrow make sure that you borrow over the smallest term you can afford, otherwise it will cost you thousands in interest.

I have no doubt that the nice little adviser at Nationwide will set it up for the same term as the other mortgages that you have because that earns them more interest overall, get quotes from them for shorter terms.

herbiesjp

Could you not take out a small personal loan?

koexelek

Mrs_Bumble wrote: »

With such a small amount to borrow make sure that you borrow over the smallest term you can afford, otherwise it will cost you thousands in interest.

I have no doubt that the nice little adviser at Nationwide will set it up for the same term as the other mortgages that you have because that earns them more interest overall, get quotes from them for shorter terms.

Agreed. Also try to go for something eith the lowest arrangement fee possible.
The branch will no doubt try to get you to take the lowest interest rate, but if it carries a big arrangement fee, it won't be worth it, as the difference in monthly payments on their highest and lowest interest rates will make minimal difference to a small amount like that