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Extending mortgage with a homeowner loan
hollandrisley
Posts: 1 Newbie
We would like to extend our mortgage to extend our home. We are currently with HSBC and instead of giving us a new mortgage to cover the full amount they are offering 2 accounts, the existing mortgage with a new rate and term, plus a homeowner loan account for the extra.
I am a little wary of this arrangement and wonder why we are not just getting a single mortgage account.
We are in a hurry to move as building is due to commence very soon, so we would like to just stay with HSBC for speed and convenience, but my question is wether there is anything we should be aware of in this situation, are we being screwed, or is this standard?
I am a little wary of this arrangement and wonder why we are not just getting a single mortgage account.
We are in a hurry to move as building is due to commence very soon, so we would like to just stay with HSBC for speed and convenience, but my question is wether there is anything we should be aware of in this situation, are we being screwed, or is this standard?
0
Comments
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It is entirely normal for a lender to issue a further advance via a sub account. It's the rate/terms that matter.
Are they acceptable to you?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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