Not that many years ago and prior to the so called credit crunch and banking crisis many home owners were able to borrow up to 95% of the value of their property. A lot of these mortgages were linked to the bank base rate, so called lifetime tracker mortgages and now with the bank base rate at .5% many home owners are benefiting from some very low mortgage interest rates.
So for those homeowners who have seen the value of their property increase and now wish to move or improve their home what should they do to ensure that their mortgage payments are kept as low as possible. Hopefully when it comes to moving house they will be able to port their mortgage and top up with their existing lender. But what if their lender will not advance up to 95%?
Consider homeowners who wish to improve their property and need to borrow up to 95% of their property’s value. Again if their lender will not advance up to 95% what should they do?
The majority of lenders seem to be happy to lend up 80% or 85% loan to value but once you get to 90% or above the choice of lender becomes very limited. So what should you do if you want to borrow 95% loan to value and have a base rate tracker mortgage. Firstly find out what your existing lender will offer you but under no circumstances give up that base rate tracker. Clearly if you want to move home and your lender will not allow you to port your mortgage to your new property then you have a problem and a reputable mortgage broker will be able to advise you on the best course of action.
If you can utilise your existing mortgage in order to move home or improve it but are still short the loan you require then speak to a secured loan broker who will be able to advise you on the cheapest way to top up your mortgage with a secured loan. There are number of lenders who will provide loans that take your overall borrowing to 95% of the value of your property. And considering you wish to preserve your tracker mortgage this could be a very good option for you. At Secured Loans UK we have experienced underwriters who can assess your requirements very quickly and provide a plan to suit your needs.