2 accounts - does this sound right?

Yes.

You require a further advance or additional borrowing. This involves another sub-account being added to your mortgage which will reflect new borrowing at a new rate on a different date to the original advance.

PUREHOMES wrote: »

My mortgage is due for renewal on 31/7.
We've been with the same lender for 11 years. However, now we want to borrow extra for an extension / kitchen.

When I spoke to the lender today, they said if I wanted to borrow more when the mortgage is due for renewal, then I would need to apply for an additional borrowing loan, to run alongside the mortgage. They couldn't put it together into one product.

So this would mean two products, two product fees etc..which seems slightly bizarre.

Does this sound right?

As the criteria has changed since the last time I applied for a mortgage, I was thinking that staying with this lender would be the best option, as I have a blemish free history with them. But now I may have to go to mortgage broker instead.

As you are wanting additional funds, then you will need to apply for an additional loan. The provider may indeed show this as a seperate sub-account on your mortgage account, and seperate trerms may apply to that additional lending.

However, as you want to re-arrange the original loan too, then discuss with the lender if/how they will allow the whole amount to be lent under the same terms, and more importantly so that you avoid any possibility of 2 product fees etc.

I know our mortgage has 2 sub accounts, but was only made aware of this when we received our first annual statement. It seems the lender made 1 sub account for the amount we applied for, but as we also agreed at the time to have the product fees added to the loan applied for, the product fees are a second sub-account.
However, we only paid one set of fees (otherwise there would be an infinite amount of sub accounts and fees added :eek:), and all the borrowing is at the same terms.

You will obviously have to pay the usual fees you would expect for the additional borrowing to be approved.

If your lender is adamant they would then apply double fees for a re-mortgage, it may simply be better to go elsewhere and get a mortgage for the total amount you want.

An independant broker may be useful to you to find the best solution. They also often have access to deals not available direct to the public.

Edit: you posted whilst I was writing this post. I see you are already considering what I proposed.