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2 Mortgages on same property - can we remortgage to new lender?

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Hello

We took out a fixed rate with Nationwide several years ago. When we moved to a bigger house & took on a bigger mortgage we stayed with Nationwide & took out a 2nd fixed rate mortgage for the extra amount. This suited us at the time as we had 1 fixed rate with 3.5 years to go, and 1 fixed rate with 2 years to go, somewhat bolstering us a bit if rates were to go up or down.

The shorter rate one has now expired (and so our rate has plummeted to 2.5% while interest rates are low). However, we're still looking at moving back onto a fixed rate.

Can anyone help me please with experience on this? Are we only able to keep 2 separate mortgages with the one provider? i.e. this would mean we have 2 options now - remain with Nationwide and fix this 2nd rate one now with them, or wait it out until the other fixed one has finished and then look at whole of market? I assume that if we wanted to shop around now we will have to pay the Nationwide exit fees & early redemption fees etc etc on our current fixed rate.

Many thanks

Rebecca

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You have one mortgage with two sub accounts. The sub accounts can have different products. I.E. one fixed and one tracker.

    If you wish to remortgage with a new lender then the entire balance with the NW will need to be settled.

    No main stream lender will accept a second mortgage charge on a property.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Depending on the figures, I would sit this out on SVR, and refix both when the next part is due, otherwise you will have extra fees to arrange, and the two parts will always be out of step, take this oppurtunity while you have a low rate to get the two parts in line.

    I would look to be overpaying to the equivialant of a comparable fixed rate now, so you build reduce the balance, so when rates rise, the increase will not be as large.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, 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.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What's the rate on your fixed bit if more than 2.5% overpay that with the money saved upto the penalty free limit.
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