Taking More Secured Money Against Existing Mortgage?

Toki

Is it possible to take more money from an existing mortgage and adding it to the secured loan against the property?

A year and a half ago I got a mortgage from Santander for £80k, property value was £230k. I have a tracker rate of 0.9% above BOE rate so only paying 1.4% currently and wanted to take out as much as I could and lump it into a higher paying savings account / bond without increasing term of mortgage, just upping my monthly payment to accomodate extra loan.

However, when I phoned up Satander, they were only willing to offer me 4.99% as it was seen as unsecured. I did say extra money was for home improvements suce as new windows and bathroom rather than say putting it into savings.

Is it normally allowable to increase secured amount on mortgage, thus only paying existing 1.4% in my case?

Thanks in advance.

Thrugelmir

Toki wrote: »

Is it normally allowable to increase secured amount on mortgage, thus only paying existing 1.4% in my case?

Additional borrowing will be at current rates of interest and terms.

Toki

Thrugelmir wrote: »

Additional borrowing will be at current rates of interest and terms.

Thanks, thought as much but worth a try!!

Gary123456790

Hi,

Another option might be increasing the term on the mortgage - this would basically mean reducing your monthly payment and therefore paying off less of the balance each month, having money left over to put into a savings account.

If they would let you switch to interest only that would be the extreme case of the above.

With either option you are effectively taking a bit of cash out of the mortgage each month and putting it in your savings.

Gary.