Home Improvement Loan

gillpaterson

I am considering taking out a home improvement loan and adding 15k to my halifax mortgage. I want to keep my original mortgage with the Halifax as I have a good deal of 1.39%, it's a tracker mortgage of 60k. The best deal the Halifax can offer me on the extra loan of 15k is 5.79% on a 2 yr fixed term. Does anyone know if I could take out just the additional loan with another lender on a better rate but keep the 60k loan with the Halifax. I'm guessing it won't be worth it as would have to pay for a valuation and legal fees etc???
Thanks

Thrugelmir

Unlikely you will better this rate. As any further advance from a different lender would be done on the basis of a second charge on the property. So would have a risk premium in the interest charge.

shortchanged_2

What rate does the loan revert to after the 2 year fixed period?

gillpaterson

Thanks Thrugelmir.
Shortchanged....the rate reverts to 3.99% variable after the 2 yr fixed term. There is no set up fee but a £99 arrangment fee.