Re-Mortgage advice

dseventy

Hi

I am helping a friend with his remortgage and thought I would post here. Not had amortgage in a while so thought I would check in with the experts.

His details

House Value : 200K
Current lending : 98K
Monthly rate : 2.99%
Monthly payment : approx £710
Lender : Alliance & Leicester (Santander)
Term left : 14 years.
Credit history : Excellent

He has been wrote to say he is deal is coming to an end and he will be put on a lifetime tracker of base rate + 0.5%.

This ironically means he will still be on 2.99%.

He wants to borrow some more money against his mortgage, approx 30K.


Some questions :

1. Is the deal on offer good?
2. He has spoke to them about more borrowing and been told he can, but any additional borrowing won't be on the current deal of 2.99%, it will be more, but afterwards he can apply to have it on the 2.99% for his current borrowings. Whats that about then? Pitfalls?
3. He is very risk averse and does not want to change from his current lender.
4. He wants to overpay, does this really knock off years?

Any advice?

Thanks

Thrugelmir

What's the purpose of the £30k ?

dseventy

DIY/Improvements and pay off some debt on a card (I dont know the split).

Is there relavance to the purpose?

D70

Thrugelmir

dseventy wrote: »

DIY/Improvements and pay off some debt on a card (I dont know the split).

Is there relavance to the purpose?

D70

Yes. The application may well fall at the underwriting stage if debt consolidation is the purpose.

shaniannie

dseventy wrote: »

He has been wrote to say he is deal is coming to an end and he will be put on a lifetime tracker of base rate + 0.5%.

Sorry for butting in, as I probably don't have anything useful to say.... lol

But base rate + 0.5% = 1%?

Is the BoE base rate not 0.5% currently?

Or is the base rate you refer to the bank's SVR?

Just wanted to check, just incase it'd affect any decisions