HSBC mortgage/HO loan - advice pls

altaf23

Hi All,

I need a bit of advice on my remortgage/homeowner loan options. My mortgage is with HSBC. Here are the options:
House Price: £290,000 (valuation done last week)
Existing Mortgage: £165,000
LTV less than 60%
Current rate: 2.89% (Lifetime tracker)
Additional borrowing needed: £65,000 for extension

HSBC have told me that I can move to a lower rate of 2.59% for the whole borrowing (£230,000) but I was thinking of first moving to an even better rate for LTV less than 60%, which is 1.99% and then keep the additional borrowing at 2.59%.

My question is:

1. Is this possible to have two loans at different rates – a mortgage of £165,000 at 1.99% and a homeowner loan of £65,000 at 2.59%
2. Will HSBC allow this?
3. Any other way of making it more efficient?

I have looked at all the lenders and the best interest rate for 80% LTV is 2.59%, which is not better than what HSBC are offering.

Any help and guidance is much appreciated.

Thanks.

burnsguitarman

We have had a mortgage and a home owner loan with HSBC, both had different rates, so shouldn't be a problem, as long as you meet all the other criteria.

altaf23

Thanks burnsguitarman.

Yes, I meet all the other criteria and the mortgage offer has already arrived at 2.59% for all the borrowing.

Keeping the two separate is an after thought and I wanted to check if it is possible before signing the mortgage offer and sending back to HSBC.