Additional Borrowing - On same mortgage?

skipfeeney

Hi,

I am about to speak to RBS about some additional borrowing. Currently i am halfway through a 2 year fixed deal at 2.99%. It looks like on the website if you take out additional borrowing its going to be an additional mortgage with an additional fee? and the cheapest fixed additional borrowing intereset rate is 4.59%?

Is that the norm? Is there no way to simply add it to my existing mortgage, or cancel existing and start a new one in one lump?

I just want to be clued up before i call!

Even with the additional borrowing, my mortgage would only be about a third of my house value, so i dont want to pay huge interest if possible

Thanks

jimjames

You can borrow extra from the company that your current mortgage is with but generally it will be at the rates that company offers now not the rate that your previous mortgage is at.

You can remortgage to a different company for the whole mortgage and get whatever rate they are offering for the whole amount but you would have survey & solicitor fees etc which you wouldn't have for an additional advance.

kingstreet

It's usual for a lender to open a sub-account to provide a further advance or provide additional borrowing. Because offers are normally limited, it's normal to see any extra money offered on whatever the lenders current products might be.

You could remortgage to a new lender to raise the whole amount you need and to pay off RBS. However, that is likely to result in early repayment penalties on your current fix and possibly mortgage transfer costs.