Overpayments on split-rate mortage?

sean7

Hi all, I wonder if anyone can help with the following scenario:

I currently have a Woolwich BRT at BBBR+0.17%, I'm looking to move house and hence raise extra funds to finance the purchase. I'm keen to keep the rate I'm on, Woolwich say it's portable on the capital I already owe, and can be extended to a new 25 year term, which is good of them. Extra borrowing would be at a rate of one of their current products. This gives me a choice of borrowing at BBBR+0.69% with £995 fee, or BBBR+0.89 with no fee.

What I am wondering is whether I can make overpayments exclusively towards the lending at the higher rate? If so could a controlled overpayment for the first few years on the 0.89% product save money over the term against paying the fee and having the 0.69% product?

I know the nice Wooly Witches should by my first port of call - I'm going to call them in the week - but just wondered if anyone else knows how it works when the borrowing is split over different rates?

getmore4less

Need all the numbers to work it out.(loan amounts, payments and surplus to overpay)


If they will let you go interest only on the lower rate you can pay even more off the higher rate loan.

sean7

Spoke to Woolwich and they limited my choices to one product, so that helps me decide!

For anyone else who's interested they say the two loan amounts are separate so you can overpay either or both as you wish, which I think is pretty good really.