why can't I keep two mortgages?

MattyAB

I have two mortgages with A&L (now Santander), one carried over from the purchase of my previous house, and the second for my current house - both fixed rate. When the fixed rate period on my first mortgage ended, it reverted to a Life Time Tracker, which is a very good deal. The fixed rate period on my second mortgage is due to end soon, and when asking Santander to offer me a new mortgage product, they insisted that my first mortgage needed to be included in the new product. This would remove the favourable rate I currently enjoy on my first mortgage.

Given that these are two different mortgage products, why can't I remortgage my second mortgage whilst leaving my first mortgage in tact?

Thrugelmir

Is your mortgage with A&L still?

MattyAB

Yes, both mortgages are still with A&L, but the advisors we speak to, and the complaints dept, are Santander.

MarkyMarkD

You don't have two mortgages.

You have one mortgage, made up of two sub-accounts, which each have different rates and other terms.

A&L are not obliged to offer you any product switch offer at all in respect of your maturing fixed rate sub-account. If they choose to offer you anything other than the contractual revert rate (presumably their SVR), they can apply any conditions they like to the switch - including requiring you to give up your advantageous (and extremely loss-making for them) lifetime tracker on your first sub-account.

Thrugelmir

MattyAB wrote: »

Yes, both mortgages are still with A&L, but the advisors we speak to, and the complaints dept, are Santander.

One mortgage. Two sub accounts with different products.

A&L no longer writes new mortgage business. (Santander is merely running down the mortgage book).

So you only options are to either stay put. Or transfer the entire mortgage balance to a new lender.

If your life time tracker is an exceptionally good rate. Then maybe overpaying on the higher interest account may be an option.

How much do you owe? What rate of interest?

MattyAB

Thanks for the advice - this is very helpful. You're right, I have one mortgage number with a (1) and (2) for each account. You're also correct that the fixed rate on the second account reverts to SVR.

Your advice reflects what Santander have been telling me. I didn't think it was fair that they could 'renege' on the advantageous deal which they previously offered me. After all, it is a 'Life Time' Tracker, and it was something they obviously agreed to - doesn't Life Time mean 'over the Life Time of the mortgage'???

However, I take your point about the sub accounts being part of the same mortgage, and therefore being subject to related conditions.

It sounds like I don't have much of a case then!

MattyAB

Mortage Sub Account 1 has £38,000, at 1.25%, Mortgage Sub Account 2 has £109,000 at 3.89%

Thrugelmir

Santander haven't reneged. As they are honouring your existing T&C's. Providing your mortgage stays as is.

With such a good rate on account 1. Personally I would stay put and overpay account 2.

As your hard to see any benefit from remortgaging to another lender. As your average rate on both accounts once account 2 moves onto the SVR is around 3.5%.

MattyAB

That's great, thanks for the advice.