Two mortgages on property

gus

Hi all - I would really appreciate any help people can give me.

We currently have two mortgages on our home, both are with Nationwide fixed rates. The first (£120k) was 'ported' over when we sold our previous property and the second (£130k) one was taken out at the time of buying our current home (May 06).

The original plan was that when the fixed rate on mortgage two runs out (May 09) we would re-mortgage both into one new mortgage. However due to the purchase dragging on interest rates rising, we may need to re-think

As the fixed rate on mortgage one runs out this summer, I was thinking that maybe I should move this over to a new deal until May 09. As ING currently have a low variable rate with no fees I thought this would be perfect.

My question is: Will ING give us a mortgage with the Nationwide second mortgage in place? Do they ask about other existing mortgages on application or is it up to me to tell them about it?

Also as ING is fees-free and Nationwide didn't have an exit fee when I started it, will I really be able to re-mortage without fees, or is there legal fees on exiting Nationwide? Giving the difference (for now) in variable rates between ING and Nationwide, I still think it will be beneficial.

AndrewSmith

ING will want a sole first charge over the property and would want both mortgages consolidated into one woth them.

gus

Thanks for the quick response AS.

Will this be the case for any lender? Surely someone would lend?

If not I either pay Nationwide's variable rate on £120k until May 09 or pay redemption fee on mortgage two. Neither option sounds good.

AndrewSmith

It will be the case with any lender. When you switch lenders any current 1st and second charges will have to be cleared.

Can Nationwide offer you nothing better?

gus

I will give Nationwide a call I guess.

Although unless they offer me a discount on the variable rate, I will be in the same position again when my second mortgage reaches the end of its fixed rate.