Getting additional money through remortgaging

noodle_doodle

Ok, house extension on the cards, need to borrow £X, where £X is about 50% of our current mortgage. Our current mortgage provider, TSB, is pushing us to take on an additional borrowing mortgage which to me has 3 drawbacks

a) it's a higher interest rate than their normal mortgages
b) due to the 2yr fixed terms it's always going to be out of sync with our 'main' mortgage
c) As soon as we get the new borrowing we're paying two mortgages and we'll then have to redo the term of the first mortgage to get our overall payments back to sensible land. And they seemed to suggest the term extension wasn't guaranteed..

I have the inkling they're pushing for the best deal for themselves rather than us....

So... is there any reason why we couldn't just get a completely new mortgage, including £X for the extension at a normal rate?

We'd have to pay an early repayment charge but it's a few hundred quid. We mentioned this to TSB but they indicated if it was for house improvements it would have to be at the higher rate... but if we got a new mortgage who's to know? I ask for a mortgage for £Y, there's a surplus of £X which comes to us which we can then spend as our own money on the extension?

In both cases, our LTV is below 50%.

(It seems a bit reminiscent of "Aunty Margaret's Fiver"... my aunty would give me a fiver and I had to spend that physical fiver on things my aunty would approve of. I couldn't spend it on a CD and then spend five pounds later on something she'd approve of...)

Any suggestions?

LRmortgage

There are plenty of lenders that will allow you to remortgage with additional borrowing for home improvements on top of the current mortgage amount owed at “the same rate”.

Of course you need to meet affordability, criteria etc.

See a broker, TSB will only tell you about TSB’s products and rules.