'Additional' mortgage? Please Help

miffy93

Hi,

Hope someone can shed some light on this as to whether it's possible or not.

Currently have a mortgage (approx £57,000) with A&L on a 1.5% rate (no tie ins etc....it just jumped down to this when we finished the discounted rate).

We're wanting to find an additional £80,000 to build an extension, new kitchen & clear debts.

Rather than remortgaging for the whole lot (and being put onto a higher rate for the whole amount) is it possible to leave the 1.5% A&L mortgage alone & just get a mortgage for the additional £80,000 from elsewhere (therefore only paying the higher rate on this rather than the whole lot).

Does that make sense & if so, is it possible?

Thanks.

GMS

You could try to get a further advance from current lender which would leave your original in place. A&L may not be happy with debt consolidation though.

Other than that you could try a second charge but this would be expensive and most likely would be cheaper to get whole lot elsewhere.

Try A&L first.

miffy93

Thanks.

What do you mean by a 'second charge' (is it what I originally asked about - ie a 'second' mortgage).

Is it just A&L who might not be happy with the debt conslidation, or is that the general view of the other lenders?

Thanks again.

GMS

How much of it is debt consolidation?
A second charge would be from another lender, not A&L. If A&L will do it as an additional loan it would be a further advance.
A second charge would not be from a mainstream mortgage lender as they would want first charge. As a result second charge secured loans tend to have much higher rates.

Debt consolidation will be looked at differently by different lenders.

What is your property worth?