Remortgaging advice please.

Bicycle_Boy

Hi all,

Looking for some advice please:

I currently have a fixed term mortgage with Santander which i'm tied into until Jan 2014.
Outstanding balance is 115K at 3.49% 21yrs 11 months remaining term.
Property is worth 250K minimum.

I want to increase this to 140K but Santander say the only way they can do it is to set me up with an additional loan at 5.99% and a £500 fee. Then when we get to Jan 2014 they can combine the two into one mortgage at a more competitive rate.

Is this the best way forward or can anyone suggest a better value approach.

Many thanks,

Bicycle Boy.

Thrugelmir

Without remortgaging and incurring considerable cost Santander are currently your only option.

If the purpose of the funds is to clear other debt then it most likely will be declined.

Bicycle_Boy

Thanks for the reply. The loan was approved over the phone earlier.
I just need to call back if I wish to go ahead.

kingstreet

A remortgage is an alternative, but as you'll have to pay the early repayment penalty to pay back your existing mortgage, you'd need a much better deal to make it worthwhile.