Changing Mortgage Deal With Additional Lending
Discussion
I'm waiting on RBS calling me back to start my mortgage application. Unsurprisingly, they're manically busy at the moment with calls.
Can anyone tell me why the initial rate for remortgaging with additional borrowing is 3.77% on their own site, but on online comparison tables shows at 1.89%? This is for a 5 year fix at 80% LTV.
Do they apply a surcharge against the whole mortgage if there is additional borrowing? Are existing borrowers offered lesser terms?
I've built an extension on my house funded predominantly with two chunky personal loans and want to get on a new deal quickly and settle the personal loans. I'm currently on SVR. So whilst it is for debt consolidation, the debt was for home improvements which should be more than covered by the increase in the value of the house. I know I'm all good for affordability just now, therefore I want to get this done absolutely as soon as possible just in case lay offs or SSP comes my way.
And... I've banked with RBS for over fifteen years and I have a BTL mortgage with them as well. Never missed any payments, all accounts squeaky clean. Surely they would be able to move a lot faster onto a new deal or am I being too hasty not looking at other lenders.
Like most people I suppose, I'm thinking house values can only go down from this point and I'd like a valuer out now before adjustments kick in.
Can anyone tell me why the initial rate for remortgaging with additional borrowing is 3.77% on their own site, but on online comparison tables shows at 1.89%? This is for a 5 year fix at 80% LTV.
Do they apply a surcharge against the whole mortgage if there is additional borrowing? Are existing borrowers offered lesser terms?
I've built an extension on my house funded predominantly with two chunky personal loans and want to get on a new deal quickly and settle the personal loans. I'm currently on SVR. So whilst it is for debt consolidation, the debt was for home improvements which should be more than covered by the increase in the value of the house. I know I'm all good for affordability just now, therefore I want to get this done absolutely as soon as possible just in case lay offs or SSP comes my way.
And... I've banked with RBS for over fifteen years and I have a BTL mortgage with them as well. Never missed any payments, all accounts squeaky clean. Surely they would be able to move a lot faster onto a new deal or am I being too hasty not looking at other lenders.
Like most people I suppose, I'm thinking house values can only go down from this point and I'd like a valuer out now before adjustments kick in.
tays27 said:
I'm waiting on RBS calling me back to start my mortgage application. Unsurprisingly, they're manically busy at the moment with calls.
Can anyone tell me why the initial rate for remortgaging with additional borrowing is 3.77% on their own site, but on online comparison tables shows at 1.89%? This is for a 5 year fix at 80% LTV.
Do they apply a surcharge against the whole mortgage if there is additional borrowing? Are existing borrowers offered lesser terms?
I've built an extension on my house funded predominantly with two chunky personal loans and want to get on a new deal quickly and settle the personal loans. I'm currently on SVR. So whilst it is for debt consolidation, the debt was for home improvements which should be more than covered by the increase in the value of the house. I know I'm all good for affordability just now, therefore I want to get this done absolutely as soon as possible just in case lay offs or SSP comes my way.
And... I've banked with RBS for over fifteen years and I have a BTL mortgage with them as well. Never missed any payments, all accounts squeaky clean. Surely they would be able to move a lot faster onto a new deal or am I being too hasty not looking at other lenders.
Like most people I suppose, I'm thinking house values can only go down from this point and I'd like a valuer out now before adjustments kick in.
It sounds like you are comparing RBS' product transfer rates (for current clients like you) and their remortgage products (which are for people remortgaging to them from other lenders).Can anyone tell me why the initial rate for remortgaging with additional borrowing is 3.77% on their own site, but on online comparison tables shows at 1.89%? This is for a 5 year fix at 80% LTV.
Do they apply a surcharge against the whole mortgage if there is additional borrowing? Are existing borrowers offered lesser terms?
I've built an extension on my house funded predominantly with two chunky personal loans and want to get on a new deal quickly and settle the personal loans. I'm currently on SVR. So whilst it is for debt consolidation, the debt was for home improvements which should be more than covered by the increase in the value of the house. I know I'm all good for affordability just now, therefore I want to get this done absolutely as soon as possible just in case lay offs or SSP comes my way.
And... I've banked with RBS for over fifteen years and I have a BTL mortgage with them as well. Never missed any payments, all accounts squeaky clean. Surely they would be able to move a lot faster onto a new deal or am I being too hasty not looking at other lenders.
Like most people I suppose, I'm thinking house values can only go down from this point and I'd like a valuer out now before adjustments kick in.
Product transfers can be done fairly quickly but if you want additional lending then it will trigger a full underwrite.....proof of income and affordability, property valuations etc etc........so, if you are going to go through that process, to secure a rate of 3.77% which is poor to say the least.....you may as well move the whole balance elsewhere to another lender and secure a rate well under 2%.........closer to 1% depending on the LTV and product chosen etc etc......
So existing customers are offered a worse rate than new customers for the same lending?
It's tempting to take the hit on the rate for 3 years, just to ensure it's all processed ASAP. All wages and outgoings are funnelled through RBS, so I'm hoping their underwrite would fly through.
Are there any lenders you know that are especially fast moving?
I imagine in the current circumstances it could be pot luck anywhere with surveyors, underwriters and back room staff all subject to self isolating and worse.
It's tempting to take the hit on the rate for 3 years, just to ensure it's all processed ASAP. All wages and outgoings are funnelled through RBS, so I'm hoping their underwrite would fly through.
Are there any lenders you know that are especially fast moving?
I imagine in the current circumstances it could be pot luck anywhere with surveyors, underwriters and back room staff all subject to self isolating and worse.
tays27 said:
So existing customers are offered a worse rate than new customers for the same lending?
It's tempting to take the hit on the rate for 3 years, just to ensure it's all processed ASAP. All wages and outgoings are funnelled through RBS, so I'm hoping their underwrite would fly through.
Are there any lenders you know that are especially fast moving?
I imagine in the current circumstances it could be pot luck anywhere with surveyors, underwriters and back room staff all subject to self isolating and worse.
Yes, almost all lenders have dual pricing differentials between new and existing clients.It's tempting to take the hit on the rate for 3 years, just to ensure it's all processed ASAP. All wages and outgoings are funnelled through RBS, so I'm hoping their underwrite would fly through.
Are there any lenders you know that are especially fast moving?
I imagine in the current circumstances it could be pot luck anywhere with surveyors, underwriters and back room staff all subject to self isolating and worse.
No issues with mortgage lenders......most are already operating remotely anyway....no slowdown.......we had a mortgage offer issued on a purchase, within 24 hours this week........
tays27 said:
Is there a typical lead time for a valuer to come out? I suppose it can vary by region, I'm up in Scotland.
Thanks for all the quick answers by the way.
A lot of lenders are using online desktop valuations these days...........hence the 24 Offer issued this week.........just depends if your figure is inline with the data available online......Thanks for all the quick answers by the way.
tays27 said:
I think the desktop valuation would be well out. Since buying the house a coupe of years ago it's been extended by over 50%, additional ensuite bedroom, utiity room, wc large kitchen diner etc And an additional bit of garden bought off the neighbouring farmer.
Well, no issues currently with valuation appointments where needed.............
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