Additional borrowing, how does it work?

pamelab21

We are currently 1 year into a 5 year fixed deal with Britannia and would like to take additional borrowing to build above our garage, Britannia said we have to take a min offer of 5 years, why I don't know as their website has other offers (she never took our details so can't be reasons specific to us)
Anyway, if we take additional borrowing for 5 years fixed rate, what happens when our current mortgage deal ends in 4 years? Are we forced to stay with them until the additional borrowing ends?
When we chose to move the mortgage can the additional borrowing then be added to the mortgage and moved to one 'account'?
Should we try and make the payments as high as poss every month to try and clear it in 5 years or should we keep the payments low and try and clear it at the end of the term if we can? What happens if we can't clear it does it move to a new deal?
Sorry for all the questions, I hate debt, all we have is the mortgage and it's currently 59k, house value approx 150k and would increase if we add another room and ensuite.

SGE1

I have a very similar question (sorry to hijack - though I suspect your questions are best answered by Britannia direct) - does anyone have experience of porting a fixed mortgage when moving from one property to another? In practice, additional borrowing (but to buy a bigger house).

My mortgage broker says that with the deal he's suggesting, which is portable, this would be straightforward - we could port our £200k mortgage at the fixed rate originally agreed, and then borrow whatever additional amount at whatever the rate was at that point in the future. He made it sound very simple, but I'd be interested in hearing about people's experiences. Presumably there's a risk that the mortgage provider's rates for additional borrowing might not be very good, but the fixed rate deal would prevent someone from going elsewhere?

dimbo61

Think the lady meant term of 5 years for extra lending
So you can take a 2/3/4/5 year fix but the term must be at least 5 years or longer.
You can remortgage the whole debt to a new lender but you may have to pay ERC ( early repayment charges) if you want to change lenders while in fixed period.

kingstreet

SGE1 wrote: »

I have a very similar question (sorry to hijack - though I suspect your questions are best answered by Britannia direct) - does anyone have experience of porting a fixed mortgage when moving from one property to another? In practice, additional borrowing (but to buy a bigger house).

My mortgage broker says that with the deal he's suggesting, which is portable, this would be straightforward - we could port our £200k mortgage at the fixed rate originally agreed, and then borrow whatever additional amount at whatever the rate was at that point in the future. He made it sound very simple, but I'd be interested in hearing about people's experiences. Presumably there's a risk that the mortgage provider's rates for additional borrowing might not be very good, but the fixed rate deal would prevent someone from going elsewhere?

Yes. You do not know if the lender will want to lend to you again and its new rates for the increased borrowing may not be great.

pamelab21

dimbo61 wrote: »

Think the lady meant term of 5 years for extra lending
So you can take a 2/3/4/5 year fix but the term must be at least 5 years or longer.
You can remortgage the whole debt to a new lender but you may have to pay ERC ( early repayment charges) if you want to change lenders while in fixed period.

I get you now, so we could take a 2 year fixed deal but we would have to take it over a min of 5 years, so we would be locked in for the length of the fixed term only. So ideally a 4 year fix that would tie in with the current mortgage and then when both deals end we could move everything that is outstanding on both accounts to a new deal somewhere?

dimbo61

What deal you pick is up to you but lenders have a minimum loan amount £25,000 and minimum term normally 5/10 years but nothing to stop you paying it off early once out of a fix.