Remortgaging for an extension. Some advice needed please.

ilsy

Hi all. I currently have a mortgage with HSBC (5 year fixed) and want to borrow some more (around £60k) for an extension. Do I have to borrow from HSBC or can I borrow from somewhere else? I have seen a very decent rate (1.44) for a 5 year fixed with Nationwide. By the way, the current mortgage plus the 60k I want to borrow will still keep me below 60% LTV.

ilsy

Does anyone happen to know please?

haras_n0sirrah

You can either borrow more with the same lender or do a second charge with a second charge lender (rates will be higher than nationwide)

ilsy

Thank you. I might have to check with HSBC to see what the fees are if i paid the mortgage early. Either that or borrow more with them and have a non fixed mortage (the current fixed one runs out in a couple of years).

dimbo61

You are a little bit at the mercy of HSBC with this.
You need to speak to them to 
1 find out what rates they offer for additional borrowing
2 if they are happy to lend the £60K you want taking into account your current income, equity, credit score and the HSBC current lending criteria.
You should read carefully the T and C,s of your current deal.
Check how much is your outstanding balance and ERC,s 
Maybe put all the details into one of the online mortgage calculators ( say Nationwide) and see if other lenders will come out cheaper.
So Existing mortgage, ERC +£60K =£xxx,xxx

dimbo61

It will of course help if you have plans drawn up

ilsy

dimbo61 said:

You are a little bit at the mercy of HSBC with this.
You need to speak to them to 
1 find out what rates they offer for additional borrowing
2 if they are happy to lend the £60K you want taking into account your current income, equity, credit score and the HSBC current lending criteria.
You should read carefully the T and C,s of your current deal.
Check how much is your outstanding balance and ERC,s 
Maybe put all the details into one of the online mortgage calculators ( say Nationwide) and see if other lenders will come out cheaper.
So Existing mortgage, ERC +£60K =£xxx,xxx

Well, house value is £240k, current mortgage is £70k (£470 monthly payment), 5 year fixed at £1.99 (2 years left). Income is £50k-£60k.

By the way, I'm allowed a 10% over payment every year and it says that current overpayment year ends on Jan 2021. Is it worth me making that overpyment now or in January?

dimbo61 said:

It will of course help if you have plans drawn up

Plans definitely drawn up although last time I went to branch to ask about this they said that having extension plans doesnt make much difference.