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Further Advances

Hi, just a few quick questions about further advances. Will they always be treated as a separate agreement to the original mortgage deed? I have been doing a bit of reading up and I can see that the interest rate charged on it will be likely to be different from the original deed. This is fine, my only concern is if I were to get a further advance, will my original mortgage deed rate be unaffected or could the two affect each other? Also would the lender combine the two agreements into one montly payment or would it be two sep payments?

I appreciate it might vary from lender to lender but thought there may be rule of thumb when it comes to these things

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Original rate is unaffected.
    Usually two payments.
  • flammable999
    flammable999 Posts: 114 Forumite
    _Andy_ wrote: »
    Original rate is unaffected.
    Usually two payments.

    Thanks. If a lender isnt lending at the moment, is this only for new mortgages or do you think this is likely to include further advances also?
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    If they're not lending then a further amount won't be possible.
  • flammable999
    flammable999 Posts: 114 Forumite
    _Andy_ wrote: »
    If they're not lending then a further amount won't be possible.

    Thats fair enough. I just thought there might be a possibility seeing as further advance I am after is nowhere near as big as my actual mortgage and would push my LTV up to 70%. I might still ask anyway seeing as further borrowing is still one of their options in their telephone options lol
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    It would have been made easier, if you had said who the lender was.......
  • flammable999
    flammable999 Posts: 114 Forumite
    VIGILANT22 wrote: »
    It would have been made easier, if you had said who the lender was.......

    Would it have? I am sure they all have their different criteria at the mo but it is a sub-prime beginning with Red and ending with Stone!
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Hmmm.....Redstone Mortgages PLC is NOT a lender. It is an SPV (Special Purpose Vehicle) that holds securitised mortgage portfilios on behalf of investors.
  • flammable999
    flammable999 Posts: 114 Forumite
    VIGILANT22 wrote: »
    Hmmm.....Redstone Mortgages PLC is NOT a lender. It is an SPV (Special Purpose Vehicle) that holds securitised mortgage portfilios on behalf of investors.

    But they offer additional borrowing on phone and website? I am not disagreeing, just wondering.
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Well, let's see if they deliver what they promise......
  • flammable999
    flammable999 Posts: 114 Forumite
    VIGILANT22 wrote: »
    Well, let's see if they deliver what they promise......

    To be honest I don't hold much hope but it wont hurt to ask. I'll update on here when I do which could be a few months off yet. I would just rather stick it under same umbrella than take out another loan elsewhere
This discussion has been closed.
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