Additional Mortgage Borrowing

Scorpio33

Hi,

I am currently on a fixed rate mortgage with HSBC (Until 2029) and am wanting to borrow more on my current mortgage in order to finance a loft conversion.

Can anyone point me in the direction of what rate this is usually at? I can find the standard rates, but is it not different for additional borrowing?

[Deleted User]

I think you'll need to provide a lot more detail for the experienced members here to be able to help further, one of them will be along soon enough - keep checking.

Exodi

In the industry, this is known as a further advance and effectively operates as a second mortgage that has it's own terms and interest rate.

You can find HSBC's page on Further Advances here:

https://www.hsbc.co.uk/mortgages/existing-customers/borrow-more/

The interest rate (at least for Nationwide) was the same as a similar product at the relevent LTV band after borrowing more.

https://www.hsbc.co.uk/mortgages/existing-customers/switch/rates/

E.g. if you took out a 2 year further fixed standard further advance which took you to 90% LTV, this would be at 4.19%. Your original mortgage remains untouched (at its current rate).

As your 'main' mortgage term ends in 2029, you will probably end up needing to keep organising new fixes for the further advance mortgage, until close to 2029 where you might want to renew on a tracker mortgage so you can remortgage them back into one product - hope that makes sense.

EDIT: sorry, I used the HSBC 'Fixed Standard' in my example, but wanted to be clear that commonly on small further advance mortgages, it usually makes little sense to go for a product with a fee - the £1k fee is unlikely to be outweighed by the slightly lower interest rate. Please don't consider the Fixed Standard product a recommendation because I used it in my example, the Fixed Saver products are almost certainly to be better!

K_S

@scorpio33 If you use the product finder here https://intermediaries.hsbc.co.uk/products/product-finder/ and select 'existing customer borrowing more' as the client type, you should get the exact rates available to you as of today.

Scorpio33 said:

Hi,

I am currently on a fixed rate mortgage with HSBC (Until 2029) and am wanting to borrow more on my current mortgage in order to finance a loft conversion.

Can anyone point me in the direction of what rate this is usually at? I can find the standard rates, but is it not different for additional borrowing?

Scorpio33

K_S said:

@scorpio33 If you use the product finder here https://intermediaries.hsbc.co.uk/products/product-finder/ and select 'existing customer borrowing more' as the client type, you should get the exact rates available to you as of today.

Scorpio33 said:

Hi,

I am currently on a fixed rate mortgage with HSBC (Until 2029) and am wanting to borrow more on my current mortgage in order to finance a loft conversion.

Can anyone point me in the direction of what rate this is usually at? I can find the standard rates, but is it not different for additional borrowing?

Absolute star!!