Borrowing more money on mortgage

[TheresAnEyeInMeSoup]

Hi everyone,

My mortgage deal I'd up for renewal next year and I'm planning on borrowing more money when I switch rates.

Does anyone know if the extra money you borrow is charged at the same interest rate as your normal mortgage or are there two separate interest rates with the additional loan being charged at a higher percentage?

Hope this makes sense.
Thanks in advance.

Bump

Generally you would remortgage the whole amount as a new loan.

Remortgaging and renewing a deal are two separate transactions.
Typically when your deal ends you would switch to a new deal with the same lender. If you wanted more money, you would take a further advance which is a separate loan to the original mortgage, charged at the rates available at the time of the release on new lending.
You can remortgage to another lender and as part of this remortgage you could borrow additional funds, securing it as one loan on one rate of interest.

You get a completely new mortgage. The mortgage company will value your property and will tell you how much they are prepared to lend you based on the valuation and the percentage loan to value they are prepared to offer. You will need to do your sums to see what your best deal is. There is no point in taking on a bigger loan if the interest rate is very high.

It is worth looking at different companies as well as your existing mortgage company. You could get a better rate.

We borrowed against the equity on our house and the second lot had a different interest rate (.5% above base for the whole term!) but we did it during the deal not at the end of it.

Thank you for the replies. Is it worth asking a mortgage broker nearer the time? I'm assuming my house has gone up in value as its has a new bathroom and loads of other works. Or should I try and sort this myself using comparison sites etc.

@ForensicAccountant

Generally you would remortgage the whole amount as a new loan.

This.