Additional borrowing with Santander - question on rates

JimmyTheWig

Hi,

We're looking to borrow additional money on our Santander residential mortgage. As it happens it will be used to fund a deposit on a BTL (see https://forums.moneysavingexpert.com/discussion/comment/67890162#Comment_67890162).

When I spoke to them at the weekend the guy said we'd be looking at paying 4.5% for a two year fix on the additional borrowing.
This strikes me as very high compared to the rest of our borrowing.

Is it a case of taking advantage of us seeing as we are tied in with the rest of our borrowing?
Or have rates really gone up in the last 8 months?
Or did he make a mistake?


Thanks,
Jim

kingstreet

Additional borrowing/further advance rates are always higher than those for the "main mortgage."

JimmyTheWig

Ok, that's a shame.

Thrugelmir

JimmyTheWig wrote: »

This strikes me as very high compared to the rest of our borrowing.

Purpose of the equity release is most likely why. As you are requesting funds for a commercial activity.

JimmyTheWig

I wondered that, Thrugelmir. Though I find it hard to understand why what I do with the money is any of their business.