Second mortgage - best deal/can I use any lender?

mackem1980

Hello Forum,

I am looking to borrow £12,500 over 15 years as a second mortgage to fund a home extension.

I've been offered 5.84% fixed for five years with my existing lender, and the fees for the product have been waived. There is also the flexibility to overpay by up to £500 a month, so the term can be reduced by making overpayments.

Am I free to enquire about a second mortgage with lenders other than my primary lender? If so, are there any products out there that can significantly better this deal?

Any help appreciated.

Thank you.

herbiesjp

It's not really a second mortgage, but a further advance form your current lender that you have been offered.

If you wanted to get an actual second mortgage from a different provider, it can be done, but is very expensive compared to what you have been offered.

If you had no penalties to leave your current provider, you could re-mortgage your whole mortgage amount, otherwise taking their offer would seem the best option (based on the limited details)

HTH

Stewboy1978

Would you not be as well taking a £12,500 loan over 10 years? Repayments on that would be around £130 Per Month - Would that not be better?