Can you get a loan to top up a mortgage?

[Mamateur]

I have a portable tracker mortgage with Santander. We want to sell my flat and move to a bigger house. Although my flat has about 100k equity and we have another 30k in cash saved, Santander will not lend me another single penny as it goes on affordability and my freelance earnings have not been so high over the past few years because I had DS. They won't touch DP because he is a professional gambler and so zero-rated for tax. His earnings don't count at all.

So I will sell my flat (all in my name, my mortgage) and transfer the mortgage to the new property but we will have to find all the extra money and are currently about 25k short. My bank have said they will lend me 25k. WIll this affect the mortgage transfer? Do they need to know what borrowing I have even if they're not lending me any more money?

It rather depends on the information you gave your lender when making your application. If by 'affordability' they asked you questions about disposable income or existing debts, for example, then taking out a £25k loan at this stage might be significant as it could have altered their decision to approve the mortgage transfer. But if they only asked about your verifiable income it would be different.

I just got off the phone from them in a state of deep depression. I thought a lifetime tracker meant they had to port my mortgage at least in the existing amount, but they say it just means I can apply for a new mortgage without paying fees. I had a baby in November 09 so obviously my earnings are lower, but now they will just x by 5 and port 170k of my original 290 mortgage.

Looks like we'll be renting.

Thanks for your post cogito.

Maybe you'd benefit from talking to an independent mortgage broker? There are many more lenders around than Santander and some have products more geared to the self-employed like yourself and your partner.

how high above base rate is your tracker?
Britannia are currently offering 2.5% above I think, plus if your partner has done valid tax returns for past 3 years they may well allow him to be included in the multiples.
ING also offering decent rates atm...

I have a mortgage broker, he's drawn a complete blank because my earnings aren't high enough. My tracker is half a percent over base rate, so very cheap, which is why I don't want to lose it and why they want to lose me.. They did offer to quote me for a mortgage if I dropped that deal and started again