A&L further loan query

Philip624

I have a further loan from A&L, £12450 at a rate of 4.99%. My main mortgage is at a rate of £150,000 1.49%, I was one of the lucky few who moved to a base rate tracker.

Althought the 4.99% is a decent rate would there be any scope for adding it to the main mortgage and paying 1.49% on the whole total.

I assume 4.99% still beats any personal loan rates available. There is no redemption fee on the 4.99% loan.

ViolaLass

Depends how much equity you've got, essentially.

Philip624

House is currently worth £250k. I am just wondering if A&L or Santander now would want to do a deal, perhaps they could offer a new fixed rate at a higher percentage, id then have to calculate if that worked out better over the long term.

wodgerdodger

They would normally allow you to switch the product onto those on their current portfolio paying the relevant fee. There is no way they will allow you to add to the exiting tracker rate for obvious commercial reasoning.

The SVR isnt bad and you have no tie in whereas any other product would have a fee and a tie in and ERC.

wodgerdodger

Just noticed that the further loan is for less than 25K and I'mpretty sure most of the products on offer have a minimum amount so there may not be an attractive product available other than SVR. Simplest way is to just ask Mortgage admin Team they will let you know all the options.

Philip624

I iwll ring A&L and see what they say. There isnt much between the loan rate 4.99 and SVR 4.74 at the moment.

Does anyone know if these rates would likely rise consistently over time? By that I mean the SVR is likely only to rise in the future but I wonder if their further loan rate rises more or less in line with it or whether in a period of higher interest rates the SVR would pull ahead?