Second mortgage query

ukjoel

Hi,

We have a fantastic boe + 0.19% tracker which is flexible and portable.

The problem is it only covers us for 150k which is the amount we originally borrowed a few years back. We need an additional 30k and if we borrow it from them our interest rate will go up to 3%.

Is it possible to get a second top up mortgage from a second bank for approx 30k. I have already asked our current provider who say we can have it but then the whole amount will be charged at the higher rate.

Personal loan is an option but at 7% seems ridiculous.

Many thanks in advance.

J

getmore4less

Second lender will be a poblem


Current lender

£180k @ 3% so £5400py

or £150k @ 0.69% is £1035

leving £4365 to cover the £30k from somewhere else

So any rate under 14.55% you are better off.

WHat do you need the money for for how long and do you need it all at once.

There are things like 0% purchase CC or flexable draw downs loan that may fit the lending you need betterthan just sticking it on the mortgage.

GMS

There may be a possibility of a second charge secure loan but rates would be from 7% plus.

You need to figure out whether it would be better taking the 30k on a higher rate whilst keeping the bulk of the mortgage on a low rate, or if you would be better taking a remortgage for the lot.

A second charge secured would not carry any huge Early Repayment Fees, a months interest is all it would take meaning you could consolidate the first and second when rates rise sufficiently for you to get out of the tracker.

Also keep in mind rates will rise. If your situation alllows you may want to consider a fixed rate for the total amount now as fixed rates are likely to rise in line with BBR increases.

ukjoel

Cheers folks,

The extra money would basically go towards buying the house and doing some immediate building work.

I think based on your comments we will buy the place using the £150k and then do a couple of years of interest only repayments which will allow us to do the building work without having to borrow anything to do it.

I had been hoping to pick up a 3% rate second or top op mortgage but from what your saying this wont be an option.

Thanks,

Wh05apk

0.19% lifetime tkr is I assume Woolwich?

If so you can port it to the new property and take the additional £30k with them on another deal which could be 3%, but you would still keep the br+ 0.19% on the ported part.

ukjoel

No its clydesdale - And they have said that any increase above original amount will mean paying current higher rrate on the whole amount.

Cheers,

Wh05apk

ukjoel wrote: »

No its clydesdale - And they have said that any increase above original amount will mean paying current higher rrate on the whole amount.

Cheers,

I would ask them again, that does not sound right, possibly get them to confirm it in writing.