How do I take out additional borrowing?

ferry

Just need some advice please on taking out some additional borrowing from our current lender.
We hope to borrow an additional 10k for home improvement plans in 2010.
We have a 110k repaymant mortgage against a property worth around £220k by todays standards.
Would we need to consult our usual broker to this or can we approach our lenders direct?Any benefits in doing this etc.?

Also we would offer to pay off all our outstanding credit-around 5k- to make the affordability aspect better.

Any advice appreciated
Ferry

dunstonh

Would we need to consult our usual broker to this or can we approach our lenders direct?Any benefits in doing this etc.?

You can go to the broker or you can go direct. No real difference.

every_penny_counts_2

Hi Ferry. You gave my question a 'bump' the other week and may remember we were in a similar situation to you? I approached our lender direct and told them we needed an extra 15k and were considering a further advance on our mortgage. They offered us 5.49% fixed for 2 years on the additional borrowing, and as we are on a fixed rate for another 18 months that was a really good deal for us and saved all the hassle of moving everything and paying ERC's. We have signed all the papers this week and should have the money by next and be able to pay everything off. So i would definately contact your lender and make an enquiry, and go from there. I had looked on moneysupermarket so i knew what other deals were out there, so i knew on balance the deal offered was a good one. You have roughly the same LTV as us so your lender may also be able to offer a good rate.
Good Luck!:cheesy:

ferry

Many thanks EPC - I truly forgot about that post!
And great news that you're well on the road with your application

I forgot to mention I've only been with my lender Northern Rock for 6 months so I might need to take that into account?

F

every_penny_counts_2

I don't know how they are with lending in their current situation, one of the brokers or more knowledgable forum members may know that, but as long as they do offer additional lending i would have thought you'd still be fine with a 50% LTV?
Fingers crossed they will say Yes and give you a good rate!