Remortgaging and borrowing more

Thanksrepoc

Hi all,

We are due to remortgage soon as our fixed rate period of 5 years will be up.

We have a repayment mortgage with, soon to be 25 years left.

Regretfully we need to borrow 20k to consolidate debt.

We both have good jobs and have 50% equity in the property so are in a good position.

If we remortgage and borrow more, does this amount get simply added to the amount outstanding on the current mortgage, and then the new repayment rate is for that whole amount? or is the amount we borrow on top dealt with as a separate account, and potentially higher %?

Its a new world to me so i wondered if you guys could help me understand this?

M

Thrugelmir

Remortgaging is when you change to a new lender. If you stay with your existing lender then it would be a product switch.

You can apply to borrow more money at any time from your existing lender. There's no need to wait. You'll simply have a second loan account ( sub account) attached to the mortgage charge.

Thanksrepoc

Thanks.
That is what i have been told.
But what if we go to a new lender and borrow more. Is that still a sub account or combined with the amount left on the mortgage?

Typhoon2000

If you go to a new lender then it’s like starting from scratch. You can get a big a mortgage as you like ( assuming you fit in with criteria/affordability).