Question on extra borrowing

gazza975526570

About 6 months ago i took out a new deal with my mortgage company for a 5 year fix and was just within the 75% LTV for the reduced APR.

I am thinking of borrowing some money for home improvements. If i wanted to borrow and it took the total owed above 75% would i then lose the reduced APR for mortgages below 75% LTV? Or would it just apply to the additional borrowing?

Cant call mortgage company as they are closed tonight and im keen to do some working out this evening if anyone knows

Many Thanks

Dave_Ham

They are unlikely to simply add it to the existing loan, rather setup a B account or further advance.

This is likely to be a new product on a different rate and only they will be able to tell you what this will be.

Good luck

gazza975526570

Sorry - yes i didnt type it very well and realise it would be as a seperate account. Do you know how its generally played - ie with the LTV?

Dave_Ham

It will be completely separate and typically it will be at the higher rate. It will depend upon the bank though, but all will leave the current rate the same.

Be mindful that again depending upon lender again, they may hold a different valuation of your property now as it may be computerised based upon postal code etc.

gazza975526570

Thanks for that and reassuring the original amount would stay at the lower rate. They use the original valuation so im fine with that element of it

Thanks for your help - appreciated.

Simon_gloster

gazza975526570 wrote: »

Sorry - yes i didnt type it very well and realise it would be as a seperate account. Do you know how its generally played - ie with the LTV?

The existing debt plus your proposed new borrowing will be combined against the lenders value of the property. At most 80%, anything over that and it'll be declined.