2nd Small Mortgage for Car Purchase

TrickyDicky101

If you don't want to change lender then your only option will be to see what the current lender will offer. You won't get a second secured loan with a different lender at the low rates you seek.

foxy-stoat

dano17439 wrote: »

I haven't but i'm currently on such a good deal with my existing main mortgage that I would be extremely surprised if any additional borrowing will be at the same rate. They'll probably want me to re-finance the whole amount which I wouldn't want to do

Best speak to them first, to see if they can match the rate your on that the moment with a shorter duration.

dano17439

TrickyDicky101 wrote: »

If you don't want to change lender then your only option will be to see what the current lender will offer. You won't get a second secured loan with a different lender at the low rates you seek.

Why not?

If I approach my current bank whom i've been with for 25 years, they'll see that

• My home is worth c330k, with a 94k outstanding mortgage
• I've consistently overpaid my existing mortgage every month for the past 4 years
• Been in constant employment for 22 years
• Never missed a payment of any credit agreement ever
• Our household income is 5 times the amount we want to borrow
• We have 2 ISA's with them with a little nestegg tucked away
• Our current account is always in credit
• We have no other debts
• We are insured for life, critical illness and income protection for more than our current mortgage

I couldn't see any reason why they wouldn't lend me the money apart from the fact that I have another mortgage elsewhere, but this would be ridiculous as the current LTV is under 30%

Thrugelmir

dano17439 wrote: »

Why not?

If I approach my current bank whom i've been with for 25 years, they'll see that

• My home is worth c330k, with a 94k outstanding mortgage
• I've consistently overpaid my existing mortgage every month for the past 4 years
• Been in constant employment for 22 years
• Never missed a payment of any credit agreement ever
• Our household income is 5 times the amount we want to borrow
• We have 2 ISA's with them with a little nestegg tucked away
• Our current account is always in credit
• We have no other debts
• We are insured for life, critical illness and income protection for more than our current mortgage

I couldn't see any reason why they wouldn't lend me the money apart from the fact that I have another mortgage elsewhere, but this would be ridiculous as the current LTV is under 30%

Why not?

You wish to use your property as an ATM and expect to borrow at 1.5%. Lenders take a different perspective to borrowers. I'd give them a call and sound them out. To see if they are interested in doing business.

Trying_to_be_good

Why not use the ISAs if they're cash? Unless you have huge savings, there's not much benefit to the wrapper after 1 April.

TrickyDicky101

If you seek funding of a second mortgage on your existing property from a new lender who you do not have your current mortgage with then they will not have first charge on the property. Hence you will not get their headline rate. If the first charge lender doesn't permit the additional lending, then the new lender won't lend at all.

dano17439

You wish to use your property as an ATM and expect to borrow at 1.5%.
Lenders take a different perspective to borrowers. I'd give them a call and
sound them out. To see if they are interested in doing business.

Totally understand what you are saying, but what the difference whether I get another mortgage of 25k, or remortage for 119k (94k existing + 25k new) at 1.5%

Why not use the ISAs if they're cash? Unless you have huge savings, there's not
much benefit to the wrapper after 1 April.

Valid point, and yes this is an option. Would have to still borrow a small amount via a personal loan, but again the interest rate would be 3.3%. Within the next year or so we have some house decorating plans which we want to use savings for

dano17439

TrickyDicky101 wrote: »

If you seek funding of a second mortgage on your existing property from a new lender who you do not have your current mortgage with then they will not have first charge on the property. Hence you will not get their headline rate. If the first charge lender doesn't permit the additional lending, then the new lender won't lend at all.

Ok thanks for the info. Genuine question...how do people do it when they move house then and port their old mortgage over and get a second mortgage for the balance?

TrickyDicky101

They almost always get the additional lending from the porting provider - hence there is only one lender and questions over first or send charge don't arise.


Do you have any facility with your existing mortgage to borrow back any of your overpayments? This is something that I have with one of my sub accounts with Nationwide. This could allow you to borrow back the money on the same terms as your existing mortgage.

dano17439

TrickyDicky101 wrote: »

They almost always get the additional lending from the porting provider - hence there is only one lender and questions over first or send charge don't arise.


Do you have any facility with your existing mortgage to borrow back any of your overpayments? This is something that I have with one of my sub accounts with Nationwide. This could allow you to borrow back the money on the same terms as your existing mortgage.

Ok makes sense. having not been in this position before I didn't know it was near impossible to get 2 mortgages from 2 different lenders covering one property.

They do offer underpayments but I doubt I can draw back any overpayments in a lump sum, but of course until I talk to them I won't know.

Just had a look with my existing lender and yes they offer 1.59% which is higher than what i'm currently paying so my original thoughts still stand that if we are to do this, they'll probably insist we remortgage for the full new amount of 119k. Again until I talk to them...

I really don't want to get rid of my existing terms though, so maybe the Mrs will have to wait