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  • FIRST POST
    • britishboy
    • By britishboy 6th Oct 17, 4:10 PM
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    britishboy
    2 mortgage accounts on one property
    • #1
    • 6th Oct 17, 4:10 PM
    2 mortgage accounts on one property 6th Oct 17 at 4:10 PM
    Right, here goes. I have 2 mortgages in my name on 1 property, both are with Barclays. Its because I moved 3 years ago the additional i borrowed was on a 2nd, smaller account with them. Basically I owe:

    £122k - fixed period ends Dec 17
    £90k - fixed period ends Jul 18

    I'd like to fix again for possibly 5 years and am happy to stay with Barclays. Should i basically arrange both again as 2 mortgages, so i can secure fixed terms on both, when they are ready to be renewed? Or is there a way of combining the 2 into one?

    Any advice greatly appreciated
Page 1
    • dimbo61
    • By dimbo61 7th Oct 17, 12:22 AM
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    dimbo61
    • #2
    • 7th Oct 17, 12:22 AM
    • #2
    • 7th Oct 17, 12:22 AM
    We have been now waiting for a bank of England rate rise for what 7/8 years and it may happen soon So 0.25 or maybe 0.5 before Xmas.
    How much difference that will make to remortgage deals from Barclays I have no idea.
    You could go onto the SVR after Xmas and wait a couple of month to get a new deal for both parts.
    I would be speaking to Barclays now and asking them the question
    • britishboy
    • By britishboy 15th Oct 17, 6:13 PM
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    britishboy
    • #3
    • 15th Oct 17, 6:13 PM
    • #3
    • 15th Oct 17, 6:13 PM
    Thanks Dimbo61, I'll get an appointment in branch with them this week or next (hopefully)

    Will they need to do another income search, or not seeing as I've been with them for about 6 years now (3 years at my old house) and never missed a payment? Reason I'm asking is 3 years ago i was earning 30% more (a lot of overtime, continually over a period of 2 or 3 years)
    • Thrugelmir
    • By Thrugelmir 15th Oct 17, 6:20 PM
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    Thrugelmir
    • #4
    • 15th Oct 17, 6:20 PM
    • #4
    • 15th Oct 17, 6:20 PM
    You have one mortgage with two sub accounts, i.e. products. If there's no fees involved for new products. Then having separate accounts shouldn't be an issue.

    If you are seeking advice then they are duty bound to check your personal circumstances. As recommendations have to be based on fact not simply what the applicant discloses. Neither the regulators nor the lenders don't want a repeat of the PPI claims saga. To avoid this apply on line.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • dimbo61
    • By dimbo61 15th Oct 17, 6:21 PM
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    dimbo61
    • #5
    • 15th Oct 17, 6:21 PM
    • #5
    • 15th Oct 17, 6:21 PM
    If you are looking to take a new product ( say a 5year fix)
    Without borrowing any more money or changing the term you can usually apply online without having to go through a full application.
    Have a look on the Barclays website to see what deals they have for existing customers.
    • glosoli
    • By glosoli 15th Oct 17, 6:22 PM
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    glosoli
    • #6
    • 15th Oct 17, 6:22 PM
    • #6
    • 15th Oct 17, 6:22 PM
    In terms of whether it would involve an income / expenditure check, it likely will, unless the two overall maturity dates are exactly the same. If there is a difference in the overall maturity dates, then it will either be a term increase, or a term decrease, depending on the set up of the new mortgage, which generally requires the bank to verify affordability. If the two overall maturity dates are exactly the same, you may get away with not having to evidence income, as nothing is changing other than the accounts simply being merged. That being said that is only my experience of this, and may not be reflective of how Barclay's will approach it.
    • dimbo61
    • By dimbo61 15th Oct 17, 6:34 PM
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    dimbo61
    • #7
    • 15th Oct 17, 6:34 PM
    • #7
    • 15th Oct 17, 6:34 PM
    So if you go into the branch and ask for ADVICE they with have to go through everything.
    However if you apply online and pick a new deal yourself you are not taking ADVICE
    • dimbo61
    • By dimbo61 15th Oct 17, 6:39 PM
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    dimbo61
    • #8
    • 15th Oct 17, 6:39 PM
    • #8
    • 15th Oct 17, 6:39 PM
    Barclays have a number of 5year fixed rate deals.
    Depending on your LTV you can get 1.75% to 3.25%
    Have a look on the website
    Barclays can do a desk top valuation of your property ( without a surveyor visiting the property )
    • amnblog
    • By amnblog 15th Oct 17, 6:55 PM
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    amnblog
    • #9
    • 15th Oct 17, 6:55 PM
    • #9
    • 15th Oct 17, 6:55 PM
    No, you cannot combine the two elements into one.

    You can secure a new rate on the £122K now and the £90K in May.

    Don’t waste time in Branch, have a Broker assist you.

    Be swift as the purchase 5 year rates went up last week and the Reward (existing borrower) rates may not be far behind.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • britishboy
    • By britishboy 16th Oct 17, 1:21 PM
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    britishboy
    Thanks again all, will take a look online and renew the 122k when it expires next month, and wait and do the 90k in 7 months time.

    When im looking at the comparison tables, when looking for a new deal for the 122k loan, do i use the LTV as 122k of 420k (house value)

    Or still look for the LTV to be of the total outstanding? (212k of 420k)
    • dimbo61
    • By dimbo61 16th Oct 17, 2:33 PM
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    dimbo61
    It is the total amount outstanding to work out LTV
    Have a look online tonight and apply ASAP ie tonight.
    You can often book a new deal up to 3 months in advance
    If your Property is worth £420K and your outstanding Mortgage balance is about £212K then you are 60% LTV and should get the best rates.
    Up to you if you fix for 5 or 10 years IF and only IF you have no plans to move ?

    PS this is a big decision and you may want the help and advice of a mortgage broker before taking the plunge
    Last edited by dimbo61; 16-10-2017 at 2:39 PM.
    • dimbo61
    • By dimbo61 16th Oct 17, 4:20 PM
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    dimbo61
    https://www.barclays.co.uk/mortgages/existing-customer-centre/mortgage/#_

    Above is the link to Barclays Existing Customer deals.

    http://www.whatsthecost.com/mortgage.aspx

    If you use the above link to Whatsthecost you can work out what is the best deal.
    It is not just a case of X costs £866 a month and Y costs £893 but what you OWE after 5 years.
    Any problems just ask and we can go through the details if you want ?
    • britishboy
    • By britishboy 16th Oct 17, 8:14 PM
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    britishboy
    https://www.barclays.co.uk/mortgages/existing-customer-centre/mortgage/#_

    Above is the link to Barclays Existing Customer deals.

    http://www.whatsthecost.com/mortgage.aspx

    If you use the above link to Whatsthecost you can work out what is the best deal.
    It is not just a case of X costs £866 a month and Y costs £893 but what you OWE after 5 years.
    Any problems just ask and we can go through the details if you want ?
    Originally posted by dimbo61
    Thanks again Dimbo, had a look (finally managed to log in) andthere are 2 that i like the look of, for the balance of £125,393.

    5yr fixed 1.65% £899 fee
    5 yr fixed 1.95% £0 fee

    I cant remember how to work out which is cheaper, taking in to account the set up fee?
    • britishboy
    • By britishboy 16th Oct 17, 8:37 PM
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    britishboy
    Also, my mortgage has 15 years and 1 month to run, and i moved house on 14 Nov 14.

    If i apply for this new rate offered by Barclays, they wont sting me for ERC for 1 month will they? I'm assuming this offer is for my mortgage to switch to once the current fixed period ends?

    Thought I'd ask as didnt want to find a good deal, then be hit with a 3% ERC for 1 month (or however it works)
    • dimbo61
    • By dimbo61 17th Oct 17, 1:27 PM
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    dimbo61
    The new deal would only come into effect at the end of your current deal so No ERC,s
    Working on 15 years, balance £125,393 and the 2 deals you are looking at
    The fee free deal at 1.95% works out about £200 cheaper.
    Please check yourself with whatsthecost
    You would owe about £87,000 by November 2022 so if you can overpay

    1.65% balance £125,393 +899 = £126292 payment £792.51 each month and you would owe £87,614.47 by 2022 Oct
    1.95% balance £125,393 Mortgage payment £804.03 each month and you would owe £87,594.91 by October 2022
    So you are only saving £11.51 a month times 60 months so £691
    Only £20 difference between what you owe in 5years
    Last edited by dimbo61; 17-10-2017 at 5:43 PM.
    • britishboy
    • By britishboy 17th Oct 17, 3:45 PM
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    • 263 Thanks
    britishboy
    Thanks (again) Dimbo61, you're a star! Applied to switch this morning and now all sorted, perfect
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