Three diffeent mortgages

u319489

I have three different mortgages with Nationwide due to a couple of small remortgages when my deals have come to an end--all three now finish one month after another
I find this quite irritating as I would prefer to have all three in one mortgage finishing at the same time
The reply I got from Nationwide was to let the first two deals expire and flip onto their base rate then put all three together
Why cant I insist I want all three in the same mortage ?
If I moved to another lender they would be in one!!
What benefits are there to Nationwide by keeping them seperate and are their any disadvantages to me?
Any replies would be appreciated--Thanks

herbiesjp

One advantage would be overpayments

Each separate mortgage allows up to £500pm overpayment

1 mortgage = £500pm maximum overpayment
3 mortgages = £1500 pm maximum overpayment

dimbo61

what are you worried about ?
You have 3 parts to the mortgage on your house and you took them out !
You may well be better off,
1 herbiesjp has already pointed out that you can overpay by 3 times the amount you would be allowed with one mortgage.
2 you may be paying different rates on all 3 parts so if you can overpay on the part with the highest rate first.
3 The deal you have with Nationwide may well be alot better than many of the deals on the market at the moment ( High fees and rates ).
4 If you can clear one part of this mortgage( by overpayments ) before the deal runs out then you have only got 2 parts to you mortgage left.
Concentrate on trying to get mortgage free rather than running up more costs in fees by changing the mortgage to another company unless you can get a much better deal taking into account ALL THE COSTS.

u319489

The chances of me making overpayments are next to none but thanks anyway
The point being i would prefer to have one mortgage ---it just seems odd to me that if you want to release a bit of equity for home improvments etc instead of taking out a loan with larger monthly payments(which is what we did) you end up with extra mortgages!
They will all be moved onto three seperate new two year tracker deals with the same rates --I just find it odd that all three when renegotiating cant become one
If in two or three years we want a bit more money for something we would then have four seperate mortgage accounts instead of just the one-where does it end!

ixwood

u319489 wrote: »

..

If in two or three years we want a bit more money for something we would then have four seperate mortgage accounts instead of just the one-where does it end!

Bankruptcy and repossession?

u319489

Thanks for your childish comments
Given you know nothing about the size of my mortgage and my affordability I suggest you only contribute if you have something positive to say

dimbo61

Can you go for a longer fixed rate deal ?
In a very uncertain financial climate a 3/5 year fix where you know what the mortgage payment is for a considerable length of time could give you security
I am in the middle of a 5 year fix and thank God for that, I also have time to build up the equity and therefore reduce the mortgage.
My number one aim is to be mortgage free ASAP.
If you have a steady job which is not going to lead to large pay rises in the next few years consider a long term fix and not just 2 years.
Please consider if you plan on staying long term in your home.
Good Luck

Mexxy

You need to see what rate Nationwide would offer you for the one that is expiring first to way up the pros and cons of going onto their standard variable rate. If you main aim is to have one rate for all parts of your mortgage then I would suggest doing what the Nationwide suggested. Also look at the rate they would offer in comparison to their standrad variable as you may find for a few months payments to get all parts onto one that he difference is minimal.

If you go to another lender they will look at consolidating all of the three parts onto one but if you come out of one part before the end date then you may be subject to early repayment charges, which is defeating the object of changing!!

Good Luck

neverdespairgirl

u319489 wrote: »

If in two or three years we want a bit more money for something we would then have four seperate mortgage accounts instead of just the one-where does it end!

What you are in effect doing is taking on more debt all the time - perhaps not the best idea.

ixwood

u319489 wrote: »

Thanks for your childish comments
Given you know nothing about the size of my mortgage and my affordability I suggest you only contribute if you have something positive to say

I know that you've remortgaged three times already and would do again if "you need more money", which is very telling IMHO.

Generally people that MEW are financially naive/inept. Unless of course it's for a house extension (i.e. something that adds real value.).

PS Increasing your debt doesn't give you more money. It gives you less ongoing as your interest burden obviously increases.

Paying down your debts/being debt free is the way to increase your money. Basic financial common sense.

Good luck!