Sorry.

I am looking for some additional funds to put on top of my current mortgage. My current mortgage goes down from a fixed rate of 6.7 to 2.7 in November so I can afford the new loan, but I need to know if they will ask me for payslips / bank statements (even though I am an existing and good customer).

Anyone ?

If your wages go into the RBS you will be fine

Id expect so – any new secured loan, even an extension, probably obliges them to do credit/financial capacity checks by law – they may be happy with a statement from you rather than documentary proof however.

Wouldn't it be better to use the lower interest rate to reduce your mortgage not increase it? Also mortgages can be an expensive way of borrowing money as you'll be paying interest for perhaps 20+ years.

I would have thought they would have to go through the steps just like taking out a new mortgage (including arrangement fees).

and remember that the 2.7% rate will be their standard variable rate, which is likely linked to the bank of england base rate which is currently as low as it will ever be so it might well go up.

I reckon the best case scenario you'll have to pay interest on the extension at their current lending rates, worst case they'll ask you to apply for a new mortgage for the total amount, all at current rates.

"I reckon the best case scenario you'll have to pay interest on the extension at their current lending rates, worst case they'll ask you to apply for a new mortgage for the total amount, all at current rates."

Indeed. Although the RBS matey on the phone said to me this would be one of two options (the other being the extra loan being a new mortgage on top of the current one. The issue is will they ask for payslips and I guess they will. Payrise time.

May I ask why your worried about them asking to see you payslips, if you earn enough why would be an issue. If you don't then thanks for breaking the economy. 😆

I did this about a year ago with RBS (to fund significant building work). They didn't ask for payslips but my salary (and Mrs Higgo's) is paid in there monthly so they know what I earn. I think it's technically separate borrowing linked to the orginal mortgage. They take one mortgage payment and online banking shows one mortgage balance but a recent annual mortgage statement shows it as two amounts.

Also mortgages can be an expensive way of borrowing money as you'll be paying interest for perhaps 20+ years.

Not really but there's no point owing money that you could pay off assuming your mortgage is costing you more than the benefit of having the cash.

I think mortgages are great but then mine's costing me 0.99% and I have an offset one so can pay off or borrow as I want. That sort of flexibility is lovely.

I think mortgages are great but then mine's costing me 0.99% and I have an offset one so can pay off or borrow as I want. That sort of flexibility is lovely.

I think mortgages are great too – for other people. I paid mine off years ago by taking any opportunity to reduce the capital when I could – like a reduction in interest rates for instance.

Well I could too but I choose to keep mine in order to have immediate access to cheap money.

Not sure about RBS but Halifax didn't ask for any payslips when I added to my mortgage a couple of years ago (quite a significant amount to), I don't have my current account with them either.