Avoiding fixed rate penalty

sween

Hello

I'm looking to borrow some more money by increasing my mortgage. There are many good deals which aare much better than my fixed rate but obviously the benefit is eaten away by the large penalty you have to pay to chnage mortgages.

Am I right to say that if I borrow more with my existing lender I probably won't have to pay a penalty as the existing money will stay on the fixed rate and only the additional borrowing will be on a new rate. The website (Nationwide) is less than clear.

Thanks

_Andy_

Yes that's correct.

opinions4u

sween wrote: »

Am I right to say that if I borrow more with my existing lender I probably won't have to pay a penalty as the existing money will stay on the fixed rate and only the additional borrowing will be on a new rate. The website (Nationwide) is less than clear.

That's how it works with most lenders.

A couple of key things to consider:

1) As far as I am aware Nationwide will insist that you take the additional lending on a new product. This may have a different expiry date to your existing product which could cause confusion in the future.

2) Such a product may have a fee.

3) There may be arrangement fee and/or valuation fee for taking a further advance.

4) If your current product reverts to their excellent 2.5% SVR, taking out a new product may cause you to move to their higher SVR for new deals.

In other words, try picking up the phone and talking to them.

sween

Thanks for the help