Mortgage - Additional borrowing advice when current provider no longer provides

Rob_E

Hello everyone,

I'm seeking some guidance on our Mortgage situation and borrowing for some home improvements. 

We remortgaged our home with Sainsbury's back in June 2019 on a 5 year fixed rate plan... Fast forward 3 months and Sainsbury's announced they are no longer going to be offering mortgages. 

Recently, we've been considering adding an extension to our home and would like to do this through additional mortgage borrowing. However, this is no longer possible through Sainsbury's.

What options do I have here? The last time we wanted to borrow more money for home improvements (we were with Halifax back then) we had a sub tier mortgage under our existing mortgage. 

Can I approach an alternative lender for the sum of money to cover the home improvements?

Or, can I change Mortgage providers without incurring largr financial penalties for leaving whilst within our fixed rate period due to Sainsbury's no longer offering a service we now want?

Thanks,
Rob

K_S

@rob_e

- You can't have two different first-charge lenders so you cant keep your main mortgage with Sainsbury's and additional borrowing from (say) Virgin

- You may be able to get a second charge mortgage/loan from a different lender but it'll be much more expensive.

- You'd have to ask your mortgage administrator about the ERC/penalty for leaving but perhaps it's worth a complaint if they say no can do. Not all products/lenders allow additional borrowing/further advances so I guess in part it depends on whether they offered it to borrowers when you signed up.As far as I can remember, they didn't offer additional borrowing on its own through brokers.

Rob_E

@K_S

Thanks for the guidance and clearing that up for me. 

When we took the Sainsbury's mortgage, the lending guide I was given specifically states "We accept house purchase, remortgage with additional borrowing cases." 

There is also a section on Home Improvements stating they may ask for written estimates of the proposed improvements if they are structural. 

I think a phonecall to them is in order really to establish what can/can't be done in this situation

pnadders

Rob_E said:

@K_S

Thanks for the guidance and clearing that up for me. 

When we took the Sainsbury's mortgage, the lending guide I was given specifically states "We accept house purchase, remortgage with additional borrowing cases." 

There is also a section on Home Improvements stating they may ask for written estimates of the proposed improvements if they are structural. 

I think a phonecall to them is in order really to establish what can/can't be done in this situation

Hi Rob.

it’s almost 1 year after your last post so you may not even see this reply but I find myself in exactly the same situation that you were in, albeit 1 year later. 

Just wondered how you got on with any complaint? I’ve got another 2.5 years left on my deal (I also took a 5 year fix) and want to carry out home improvements.

Many thanks in advance.

amnblog

Best for Beans

ACG

I cant see them providing the additional money as they probably no longer have the permissions to lend. 
I also cant seem them waiving the ERC as there would never have been a guarantee to allow additional borrowing, it would have always been subject to...

I think you are limited to a secured loan personally. 

K_S

pnadders said:

Rob_E said:

@K_S

Thanks for the guidance and clearing that up for me. 

When we took the Sainsbury's mortgage, the lending guide I was given specifically states "We accept house purchase, remortgage with additional borrowing cases." 

There is also a section on Home Improvements stating they may ask for written estimates of the proposed improvements if they are structural. 

I think a phonecall to them is in order really to establish what can/can't be done in this situation

Hi Rob.

it’s almost 1 year after your last post so you may not even see this reply but I find myself in exactly the same situation that you were in, albeit 1 year later. 

Just wondered how you got on with any complaint? I’ve got another 2.5 years left on my deal (I also took a 5 year fix) and want to carry out home improvements.

Many thanks in advance.

It's a year old thread so just tagging the OP @Rob_E