Nationwide mortgage in 2 parts??

evansmummy

Hi,
We have an exsisting fixed rate mortgage with Nationwide which is due to expire end Apr 2011 and there's a possibility we might need additional borrowing before then due to a house move.
Called Nationwide who said it was possible but I'd be on two different rates (that's fine) but once the end of April comes we can't bulk it all together and it would be two seperate payments entities for good.
Does that sound right?

[Deleted User]

Yes. I have exactly that situation with them. You'll have two different rates (potentially even after the fixed terms end), and since you'd never agree to either put them on the cheaper rate (which benefits you) or the more expensive rate (which benefits them), you'll have two separate products.

However, there can be advantages. One of mine is on the BMR so has no ERC, the other is on a base rate plus 0.68% (although unfortunately capped at as 2% base rate, but still good) but with an ERC. So I can overpay/clear a big chunk of the overall mortgage without incurring fees. It can also give more flexibility if you wanted to move some, but not all, of your mortgage to a fix for a bit of security.

You should also get both on the same annual statement, so it's easy to see what you owe.

Wh05apk

If there is only a possibility of moving, the chance of you completing before the end of April is slim, so you could hold back until then, and get one rate, or even change lender.

weegieblue

I used to be a mortgage adviser and did a lot of these with Nationwide. The only thing I'd say is be careful with the products you mix. Try to get the smaller part on a product without an exit charge otherwise at some point in the future this will kick in, either when you sell or when you remortgage to another lender. I used to try to put the smaller part on a no fees tracker which I'm not sure they even have anymore, as this meant you could combine the lot when you remortgage, even if it is with Nationwide.

evansmummy

thanks for that advice people. I agree the possibility of selling and all the rest of the bumf before the end of April is pretty slim. If all goes to plan I'll stipulate that as the move date.

Burridge60

Nationwide will operate your whole mortgage in two accounts. Both can have a separate product and you would pay a fee for each unless they were simultaneous and you would then just pay the larger of the fees.

They allow up to four products/accounts and as such this enables you to have an overpayment facility of £500 per account so with two accounts with products that have early repayment charges (ERCs) you could over pay by £1000 a month without the charges being applied.

This also means you can preserve a product with a competitive follow on rate and are not compelled to move to their more expensive rated product for all of your mortgage. If Base Mortgage Rate (BMR) will apply to your current mortgage when the fixed rate ends in April this should be at 2.50%. You could use a fixed rate with your new bit and have a mix and match mortgage preserving the low rate although it is linked to BoE base rate and could increase in the future..