Help! Need Mortgage advice for Existing Mortgage

wb767

Hi All

Hoping you can help me.

I have a tracker mortgage with HSBC, around 2% currently.

Example house value: £120,000
Example loan value: £100,000
Example loan balance: £70,000

I wanted to know if it would be possible to take out the £30,000 difference between the loan value and the loan balance?

I've never done this before and don't have a clue whats the best option.

Also, would I have to re-mortgage? If so, does that mean my entire mortgage would be restructured onto a new deal and (possibly) a worse deal that my current deal (which I think is good in the current market).?

New to this, so if you could help that would be great.

Many thanks
Matt

beecher2

You could ask your lender for additional borrowing, which would be at their present lending rates. You'd keep the £70k and get the additional £30k at a higher rate. your starting loan value isn't relevant.

wb767

thanks for the advice. that would just be like a normal personal loan then correct?

i'm looking for borrowing which would have an interest rate below personal loan rates....hence the reason I thought i could re-borrow up to my original mortgage limit. but i guess it doesn't work that way..?

beecher2

No it wouldn't be a personal loan - it would be a new deal for the additional borrowing. Your lender would have to agree that your house is worth what you say it is as the LTV will be high if you borrow an additional 30k