Additional borrowing

Posted on 15 September 2011 by Debbie

I'm not sure what is acceptable terms & conditions or interest rates, I have had my property for 11 years and am only looking for £6k. My credit rating is not sufficient for unsecured however I have never missed a mortgage payment. I am valued at £130k so am very nervious about securing a relatively small amount against this with so much small print but am confident I can meet these payments.


You don't say what you want to borrow the money for, but if the reason for borrowing is not property related you will not be able to get a secured loan.  This is because the amount you wish to borrow is below £25,000.

If the money is for home improvements or repairs the best place to go would be your mortgage lender.  They will be able to consider a further advance on your existing mortgage and both the rate and fees will be cheaper than borrowing the money elsewhere.  There is even a chance that they will look at your previous payment history and not bother to check your credit with anyone else.

The additional borrowing will be added to your existing mortgage and you will probably be given the opportunity to review the rate and term of both the new loan and the existing mortgage.  If you are not offered this you should ask whether it is possible and what they have to offer.

With regards to the small print, this will be along the same lines as your existing mortgage and the end result will be the same - if you do not make the mortgage payments you could lose your property.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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