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borrowing advice please!

(6 Posts)
Ispywith Sat 03-Nov-12 13:54:38

Ok.. our mortgage is on the lowest baseline rate so doesn't cost us much in the grand scheme of things. We would like to borrow about £15,000 extra. My question is, if we borrow more is this remortgaging or can we take out another mortgage on this amount? Only ask this as i don't want to change the rate the other larger mortgage is on...hope this makes sense! The new amount we would fix over 5 years over a 20-25 period. Just playing around with figures as may try and do an extension on the house. any ideas?

SpottySlippers Sat 03-Nov-12 14:12:24

We did this two years ago; we have a discounted base rate tracker mortgage and wanted to borrow another £30k for our extension. Our lender, HSBC advised the solution was a second mortgage, we chose a 5 year fix with them. It is linked to out main mortgage; it was subject to strict income review etc as per the first mortgage. We did have to take it over a slightly longer term than our main mortgage but we are overpaying now to bring it in line. Hope that makes sense?!

Ispywith Sat 03-Nov-12 16:25:16

Thank you. smile it's all a bit daunting! We have just got out of our overdrafts & DH has a better job so thinking just get on with it! From looking online with Nationwide (who we are with) it would only be about £78 extra a month. We are planning on over paying the main mortgage by £350 a month. So fingers crossed in 13/14 years we will be mortgage free! Well that's if they don't double the rates! When you did yours you said they were strict about income etc, as DH has just moved jobs would that be a prob? Or do they want so many payslips to see?

SpottySlippers Sat 03-Nov-12 19:53:54

Difficult to remember to be honest, they just wanted to be sure we weren't over committing. When we took out the original mortgage 7 years earlier I was earning more than DH, however, when we applied for the second mortgage my income had dropped substantially as I had changed jobs due to having children (3DC's hence the need for the extension plus a crumbling old cottage in desperate need of refurbishment)! HSBC requested bank statements, payslips etc however if your DH could get a letter from his employer confirming his new position and income this would be helpful. Obviously we had a 7 year payment history on our side plus a sound track record as we had never missed a payment.

It is worth the stress as we now have four bedrooms, two bathrooms, three reception rooms, laundry room, cloakroom and a superb kitchen/dining/snug. We also now have a signficiant amount of equity in the house. Sorry if this sounds a bit smug, but we did have a tough time getting to this point, no kitchen for 6 months (whilst pregnant with DC3), numerous issues along the way - new roof for the main house which wasn't budgeted, new mains water supply needed, additional steels in the roof etc etc! Day to day living is a bit tighter now...........

Rockchick1984 Sat 03-Nov-12 22:15:31

Ispy if he's on a permanent contract they should accept his contract as proof of income. He may struggle if he has a probation period though until he's past that smile

Marrow Sat 03-Nov-12 23:37:31

Nationwide will need your DH to have been in his new job for three months before you can apply for a further advance.

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