Have a fixed rate mortgage but want to borrow more...
Discussion
Pulse
I've done this. We stayed with the same lender and moved the original mortgege onto the new house on it's fixed rate deal. The lender allowed us to increase the mortgageat the same time, and we put this addtional part on a different fixed rate.
Currently I have one mortage with C&G sub-divided into 4 parts, with each part being a different value and different fixed rate options. This allows a lot of flexibility, especially as you can put these parts on different terms, ie if your original mortgage has 20 years left to run, you can take out the additional parts for whatever term will suit you.
Talk to your current mortage provider.
I've done this. We stayed with the same lender and moved the original mortgege onto the new house on it's fixed rate deal. The lender allowed us to increase the mortgageat the same time, and we put this addtional part on a different fixed rate.
Currently I have one mortage with C&G sub-divided into 4 parts, with each part being a different value and different fixed rate options. This allows a lot of flexibility, especially as you can put these parts on different terms, ie if your original mortgage has 20 years left to run, you can take out the additional parts for whatever term will suit you.
Talk to your current mortage provider.
DavidY said:
Pulse
I've done this. We stayed with the same lender and moved the original mortgege onto the new house on it's fixed rate deal. The lender allowed us to increase the mortgageat the same time, and we put this addtional part on a different fixed rate.
Currently I have one mortage with C&G sub-divided into 4 parts, with each part being a different value and different fixed rate options. This allows a lot of flexibility, especially as you can put these parts on different terms, ie if your original mortgage has 20 years left to run, you can take out the additional parts for whatever term will suit you.
Talk to your current mortage provider.
Ok, I thought that would be the case. I will get on to them and see how feasible it is for us to increase it. In the current climate, I don't know if we will be able to borrow as much as we want to.I've done this. We stayed with the same lender and moved the original mortgege onto the new house on it's fixed rate deal. The lender allowed us to increase the mortgageat the same time, and we put this addtional part on a different fixed rate.
Currently I have one mortage with C&G sub-divided into 4 parts, with each part being a different value and different fixed rate options. This allows a lot of flexibility, especially as you can put these parts on different terms, ie if your original mortgage has 20 years left to run, you can take out the additional parts for whatever term will suit you.
Talk to your current mortage provider.
I think we'll need to increase the term of the mortgage (we're only 25 and 22, so not too bad) from the current 23 years left to 30.
We did a similar thing (tracker at 0.25 above base, wasn't going to let that go!) and we were allowed to move it when we bought a new house and added another mortgage on a fixed 2 year which then goes to a tracker, in effect another mortgage.
What I would say is that your limiting factor will be the loan to value, i.e., what you've borrowed against what the valuation of the property. That will limit you as to how much you can borrow.
What I would say is that your limiting factor will be the loan to value, i.e., what you've borrowed against what the valuation of the property. That will limit you as to how much you can borrow.
I take it you are moving house rather than buying a second property? If so you'll need to check that your mortgage is portable (check the Key Facts Illustration or Mortgage Offer), i.e. the mortgage lender will allow you to transfer the mortgage to a new property. Otherwise you may have to pay early redemption penalties.
If you are looking to buy a second property then your lender should be able to give you a further advance if you meet their lending criteria.
I'd suggest talking to a broker and having them explore your options.
If you are looking to buy a second property then your lender should be able to give you a further advance if you meet their lending criteria.
I'd suggest talking to a broker and having them explore your options.
Apparently no issues transferring the mortgage, but my mortgage advisor at the Halifax just isn't making sense to me at the moment! I'm going to read over everything again, but I'm sure it doesn't make sense. It also seems he would be offering me a rate of 7%(!) on the new bit! Surely that can't be right in the current climate! Should be nearer 5% if going fixed!
Can I go with another lender for the extra bit?
Can I go with another lender for the extra bit?
Road Pest said:
ETA yes you can look at other lenders.
You could look at other lenders if you switch the whole mortgage & pay the redemption penalty. You couldnt for example transfer your existing Halifax rate & take a top up with Nationwide. That would involve a 2nd charge & its a specialist lender thing & you'd only do that if your exist lender has refused you & you have absolutely no other option, its expensive to do.
The obvious way is to 'port' your existing deal & top up with another rate from your existing lender, this will avoid the early redemption penalties as your existing deal isnt being repaid. The rate for the extra amount borrowed will depend on the loan to value, as mentiond above, if its over 75% & close to 90% then the rates can be around 7%ish.
Its worth looking at the figures & see if its actually worth paying the fee & jumping ship to a lender that offers a far better rate, over 2-5 years it may save you if your new rate is a lot lower than your current rate. If you want to then PM me & I can work out the figures for you.
hope that helps.
Edited by splodge s4 on Thursday 19th November 10:29
I have just gone through this exact process.
Had about 2yrs left on a fixed term deal with Northern Rock for a 100% LTV mortgage of 110k that I took out in 2005 at 5.79%
I wanted to move to a larger house costing 150k and up the value of my mortgage, I also became self employed a little over a year ago.
My broker (who had to work really hard to secure me this deal) managed to get the Rock to agree to port my existing 5.79% deal onto the new property provided that I reduced the LTV to 85%
As I didn't complete on both sale and purchase on the same day I had to pay the early redemption penalty, but they transferred this back to my current a/c on the day the purchase completed.
This meant that I had to lash out 27k in one hit, but I got the house and am free to move my mortgage in Jan 2011 when the original fixed period ends.
Had about 2yrs left on a fixed term deal with Northern Rock for a 100% LTV mortgage of 110k that I took out in 2005 at 5.79%
I wanted to move to a larger house costing 150k and up the value of my mortgage, I also became self employed a little over a year ago.
My broker (who had to work really hard to secure me this deal) managed to get the Rock to agree to port my existing 5.79% deal onto the new property provided that I reduced the LTV to 85%
As I didn't complete on both sale and purchase on the same day I had to pay the early redemption penalty, but they transferred this back to my current a/c on the day the purchase completed.
This meant that I had to lash out 27k in one hit, but I got the house and am free to move my mortgage in Jan 2011 when the original fixed period ends.
Doing a similar thing now too. I've been offered 3.19% above base by Scottish Widows for the extra I want to borrow. As their SVR is only 3.99% I think I'll go with that and avoid being tied in for any period. I've been with them for a couple of years on an very good rate and have over 25% equity. I'll keep the majority of the debt on the existing loan to keep my options open.
As someone else said LTV has a massive impact.
I think now is a dangerous time to get a new deal with tie ins.
As someone else said LTV has a massive impact.
I think now is a dangerous time to get a new deal with tie ins.
splodge s4 said:
K50 DEL said:
I also became self employed a little over a year ago.
Purely for that fact Del thats pretty good going. Not many lenders will lend with 1 years trading.In all honesty, before I started the process, I was told that porting my mortgage to a new property with NR was a simple case of my mortgage guy filling in an online form.
After I'd sold my place, we then found out that because it was a "together" mortgage I would have to do a whole new application, as if I was a new customer.
I would not have begun the process if I'd known it was going to be as difficult as it was.
It took months, three appeals to NR and threats of the ombudsman before they would finally agree.
My Mortgage guy well and truly earned his money on this one!!
Pulse said:
So in essence, I couldn't keep my bit with Halifax and get another one out for £60k (which is what I need) with another lender?
It maybe possible. I come accross cases where the mortgage is with one lender and there is a secured loan with another. It can be high street for both aswell.I guess the best thing to do would be to speak to my mortgage advisor at the Halifax, although he seems pretty useless.
Basically, if I explain it all on here, it might paint the picture better...
Bought our house for £143,000
Now worth hopefully £135,000
We owe £123,000 on the mortgage, so let's say £10,000 equity in the house.
The house we want is £200,000
So, we'd need another £190,000 on top of our equity.
He has told us we'd need to put down 10%, which means we'd need to find another £10,000.
He's also told us that he would port across our current mortgage @ 5.99% fixed (3 years left of this rate) and put the extra amount @ 6.79% fixed (for 3 years I believe)
Questions:
Can I not get a better rate?
Is he likely charging us to port it across?
Is there another solution?
What else do I need to consider?
Basically, if I explain it all on here, it might paint the picture better...
Bought our house for £143,000
Now worth hopefully £135,000
We owe £123,000 on the mortgage, so let's say £10,000 equity in the house.
The house we want is £200,000
So, we'd need another £190,000 on top of our equity.
He has told us we'd need to put down 10%, which means we'd need to find another £10,000.
He's also told us that he would port across our current mortgage @ 5.99% fixed (3 years left of this rate) and put the extra amount @ 6.79% fixed (for 3 years I believe)
Questions:
Can I not get a better rate?
Is he likely charging us to port it across?
Is there another solution?
What else do I need to consider?
Pulse said:
I guess the best thing to do would be to speak to my mortgage advisor at the Halifax, Questions:
Can I not get a better rate?
Is he likely charging us to port it across?
Is there another solution?
What else do I need to consider?
Going the secured loan route (porting your current Halifax deal & top up with another lender) is a bad idea, you'll be looking at rates of at least 13% for the top up of £57k, why do that when Halifax will offer you 6.79%? As I previously said some people may do it but only when everyone else has declined them & they have no choice.Can I not get a better rate?
Is he likely charging us to port it across?
Is there another solution?
What else do I need to consider?
The big thing here is you need 90% loan to vaule so a new mortgage of £180,000. You have 2 choices mate:
1) Stick with Halifax & do as they say. You could maybe ask for a tracker on the top up, it will be lower than the fix rate but could of course increase when rates go up... when ever that will be.
2) Or pay the penalty & shift the whole mortgage to another lender, If you look about you can find a lender that will lend 90% at about 5.99%.
My curry has just arrived so I'll post again in min!
Pulse said:
Thanks Splodge. So basically 6.79% isn't as insulting of an offer as I thought then
Its the best they can offer with a fix rate at that loan to value. Lenders still havn't got alot of money so they really want to make sure its safe, 75% & below is where you'll find the 3.99%ish deals. However saying that this week it does seem to be getting better! 
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