To remortgage or not remortgage?

jandg

I'm currently coming to the end of my mortgage term and was looking to remortgage with A&L (with them now).
I have also got an additional loan offer with them for an extension on my home. Due to hiccups the extension won't go ahead now till after Christmas and the loan agreement will have expired.
I was looking to just remortgage my existing loan but was told I'd need to make the loan 'live' in order to remortgage.
I want to stick with A&L as the additional loan is not enough to cover the full extension but I was told that as work was done on the extension I could lend more as the value of my home will increase as the work is done.
This is my dilemma is:
Do I cancel the additional loan and remortgage my existing mortgage?
If so do I run the risk of not getting a loan when I reapply later?
Do I make the additional loan 'live' now and remortgage the full amount in advance of needing the extra cash?

Any suggestions?
Thanks in advance of any help

jandg

Do banks and bs charge for putting additional borrowing onto a mortgage; even if the loan is through them?

kingstreet

I'm a bit confused.

Firstly, a remortgage is a transfer from one lender to another. If you are staying with the same lender you are performing a product transfer, or changing to a customer retention product.

If you have a decent deal offered to you and you think it is better to stay with that lender, you should do so.

You then appear to be approaching your existing lender for further borrowing? They won't let you do the product transfer without taking the further borrowing now, a few months before you need it?

I'd suggest moving to a new lender for the full amount you need. Many offer fee-free transfers and if the overall cost of your mortgage is less each month, you could be better off.

However, looking at this;-

as the additional loan is not enough to cover the full extension but I was told that as work was done on the extension I could lend more as the value of my home will increase as the work is done

I'm wondering if you're suggesting that you have insufficient equity in the property and will have to apply for more money based on the later value of the property?