Help re mortgage deal please

bigg2001

Hi

I am on a tracker until August 2011, however would like to borrow some money against the equity in my property - looking to borrow 30k - have equity of 150k.

Would I have to pay redemption penalty which is in my contract if I pay of early or what other costs might they charge me?? Or would it just be arrangement fee and money in 2 separate accounts so 30k on new deal and remaining money on tracker??

Or should I wait until next AUgust to borrow the money (the money is for an extension/new kitchen) so there is no rush other then my impatience!!

Any help and advice, gratefully received xx

herbiesjp

You would ask you current lender for a further advance.

The extra £30K would be on a current deal. Try and get something with no penalties if possible, or with an expiry close to when the first deal expires. That way if you need to move lenders, you will not be hit with any early repayment penalties.

Full underwriting required, as you are looking to borrow more.

So depending on your circumstances they may or may not agree.

Jackinbox99

Depends on the lender.

For Nationwide for example, they wouldnt touch your existing mortgage, that stays as it is. Then you would get a seperate mortgage with them for the 30k at whatever the current rate is, incuring any current mortgage fees.

Alternatively you could cancel your current mortgage and pay early redemption fees, then just get a new morgage with a new lender for your current mortgage + the 30k.

You need to compare what rates your paying atm, what rates your current lender wants for the 30k factor in the early redemption fee and compare that to what you can get with a new lender.