£50,000 additional borrowing on Mortgage-advice please

krissy08

Good morning all,

I am in a 3 bed semi which I bought for £180000 in 2007. I have never quite been ready to work on it till now- We need a new kitchen, new bathroom, and ideally conservatory –hence the £50,000 tag. I would ideally like to release some equity for personal use as well for a business venture I am starting.
It is worth about £220,000 (next door sold house price Jan 2014). We overpaid over the last few years And now owe £105000. I would like to take additional borrowing with the big lender beginning with B and have been asked for myself and OH, 3 months payslips which are roughly 2500 and 1660 per month net, we have no debts. I am timing it right to get the money over the summer so have held off for now.

Can anyone advise what the chances of getting that figure for additional borrowing are? Will I need to show something I have not thought of?
I have been told it will be a new second mortgage , I have done my sums and it is worth it, are there things I can do to increase my chances of a good deal on that second mortgage?.
I have been to B and all they say is just come along when you are ready with your 3 months slips (apparently it used to be just a month until last year)

Basically all advice welcome please

amnblog

You should have a number of options (including Lender .


It may or may not be 'a new second mortgage' - whether that is sensible details on the details of your current arrangement.


Don't limit your options by just going direct to Lender B.


Have it looked at properly by an independent mortgage broker.

krissy08

Thanks amnblog

My current deal with B is a 0.9% above BR tracker which is why I have been able to shave off so much, as a result I don't want to leave them completely as I will lose that deal on what will be the bulk of the loan.

Can I add a different company to my existing with just the additional?

If yes, does that impact for my credit history?


Thank you

amnblog

You can raise the extra either with your current lender or with another.


Don't worry about your credit history, if you are clean and stay that way you wont have any issues.

dimbo61

Your best bet will be with your existing lender as another lender will have a second charge at a higher rate.
You also have a great tracker which you really do not want to lose.
Would you consider a single storey extension with velux Windows rather than a conservatory ?
Check on B website what deals they have for existing customers wanting to borrow more and overpay the more expensive debt once you have had all the work done and paid for.

krissy08

wow dimbo61 ,
thank you..I never thought of a a single storey extension with velux Windows. I need extra space for the kids.
The more expensive debt will probably be the additional borrowing due to the higher interest rate (50,000 at about 2.4%) but the existing debt is more (100k at 1.49%) , will I be able to just tell them I want to pay off the more expensive one first?

krissy08

amnblog are you a whole of market mortgage advisor?.

I'll see the rates offered by lender B then share them with you to see if you can beat them. They don't say I need to have quotes but should I get them anyway?
Thanks