Santander additional borrowing

2018misssaver · 23 May 2018 at 11:55AM

We are currently looking at additional borrowing options for home improvements/extension as we don’t want to move. Currently in a fixed deal with Santander so not an option to remortgage at the moment so wanted to get some information on the additional borrowing process. On doing the online Santander calculator they could potentially lend us up to £120k Just wondering if anyone has an recent experience of this?

Lilla_D · 23 May 2018 at 12:49PM

Additional borrowing (further advance) means a new deal for the extra amount. This means that the interest rate you'll get for the additional borrowing will likely be different from the one you are currently on and the deal will finish at a different time as well.

For example, if your current fixed rate ends on 31/12/2019 and this one will end on 31/07/2020, then you'll have a few options to consider:
- revert to the standard variable rate on 01/01/2020 and pay more until you can switch to a new deal on the additional borrowing without paying an early repayment charge;
- take a new deal from Santander for the original amount when the current deal finishes and then take a new deal for the additional amount when that deal finishes, etc., i.e. maintaining 2 different loans at different times, but always sticking to Santander;
- take the plunge and remortgage the two amounts together either with Santander or with a different lender when one of the deals finishes and pay the early repayment charge for the other deal. For example, remortgage on 01/01/2020 for the full amount and pay the penalty for coming out of the further advance deal early.

Not sure, if this was the info you were after, but hope it helps nonetheless.

2018misssaver · 23 May 2018 at 5:07PM

Great, thanks for the info.

If anyone else has gone through the process of additional borrowing with Santander I’d just like to know can it be done over the phone or do we have to go in branch, what info do they need as I know it’s all changed now since we took out our mortgage?

We are both employed, only have our current mortgage payment, 1 car finance and about £3K across a couple of credit cards. Just interested what details they want - is it 3 months payslips and bank statements etc - what about quotes for extension work? We will have quotes soon but I’m keen to know in case we need anything we haven’t thought about.

Thrugelmir · 23 May 2018 at 5:20PM

You'll find most of what you need here.

https://www.santander.co.uk/uk/loans/home-improvements

Belladonna14 · 23 May 2018 at 8:34PM

I’m interested to know your replies as we are in the same position.
I have looked at a variable rate for the second mortgage charge which is a higher apr and a worse rate than our mortgage, but has no early repayment charge.
I am hoping if we can take this out and get the extension done before the fixed rate on our current mortgage deal runs out, then at renewal we can do a complete remortgage for both amounts based on the higher value of the house (hopefully) from the extension.
However, I don’t know if this is me being presumptious so I am trying to find an independent broker to advise me if this is feasible.

2018misssaver · 23 May 2018 at 10:27PM

I did wonder about the 2nd mortgage charge early repayment penalty but now that makes sense. We contacted a broker we used a fair few years ago and he mentioned about combining both once the fixed deal ends but didn’t explain you can get the second loan without an early repayment penalty.

Santander additional borrowing

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free