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  • FIRST POST
    • PUREHOMES
    • By PUREHOMES 9th May 18, 8:56 PM
    • 145Posts
    • 16Thanks
    PUREHOMES
    2 accounts - does this sound right?
    • #1
    • 9th May 18, 8:56 PM
    2 accounts - does this sound right? 9th May 18 at 8:56 PM
    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.
Page 1
    • kingstreet
    • By kingstreet 10th May 18, 9:29 AM
    • 33,397 Posts
    • 18,085 Thanks
    kingstreet
    • #2
    • 10th May 18, 9:29 AM
    • #2
    • 10th May 18, 9:29 AM
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • PUREHOMES
    • By PUREHOMES 10th May 18, 10:13 AM
    • 145 Posts
    • 16 Thanks
    PUREHOMES
    • #3
    • 10th May 18, 10:13 AM
    Thanks for the reply
    • #3
    • 10th May 18, 10:13 AM
    So now I need to weigh up if it makes more sense to go for a completely new mortgage with all the legal fees etc that are involved with that.

    Or stay with the current lender, (as I have a good history with them), and have the two products running simultaneously.

    My initial thoughts, are to go to a broker and try see what is on the market. If for any reason I'm declined, or the offers are high, then I can go back to the original transfer product that my current lender has offered, and look for additional borrowing later.

    Or if I stick with the current lender, then a long term fix would be better, so I don't have to pay double fees to change product again in 2/3 yrs time
    Last edited by PUREHOMES; 10-05-2018 at 10:50 AM.
    • Bravestar
    • By Bravestar 10th May 18, 10:15 AM
    • 85 Posts
    • 54 Thanks
    Bravestar
    • #4
    • 10th May 18, 10:15 AM
    • #4
    • 10th May 18, 10:15 AM
    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.
    Originally posted by PUREHOMES
    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 ), 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.
    Last edited by Bravestar; 10-05-2018 at 10:17 AM.
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