additional borrowing on mortgage advice!

greengherkin11

Hi there,
Hoping I can get some advice!
My five year fixed rate with the Halifax has just come to an end so I have moved onto the variable rate at 3.5% for two years which is fine.
However I want some additional borrowing of £20k but Halifax have only offered me 5.9% tracker for 2 years. Does this then move down to a better rate after the 2 years has finished?

Would I be able to go elsewhere and move the whole mortgage and still have the £20k in cash?
Any advice greatly appreciated!
Thanks !!

Thrugelmir

greengherkin11 wrote: »

Hi there,

However I want some additional borrowing of £20k but Halifax have only offered me 5.9% tracker for 2 years. Does this then move down to a better rate after the 2 years has finished?

Ring them and ask for the terms of the offer.

greengherkin11

still waiting to hear back!

Jackinbox99

I would expect that the additional lending on a 2 year fixed would revert to the normal variable rate after that 2 years.

If you have now moved your main mortgage onto the variable rate, are you tied in? or can you move elsewhere? If so, you could simply remortgage with a new lender - its then up to you as to if you wish to remortgage to a higher amount with the new lender. The same as with any remortgage you need to factor in any "closing mortgage" fees and any "new mortgage setup" fee`s & valuation fees with the new mortgage.

It may turn out cheaper to get a personal loan for the 20k instead?