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Remortgaging with a top up?
becca0417
Posts: 3,114 Forumite
Hi
We brought our first house in July 2010 with a fixed rate 3 year mortgage 85% LTV. We recently (Dec 2012) moved into a bigger house and took some of the equity out of our last purchase to do some renovations. As we had a hefty early repayment fee on the other mortgage, we just topped it up to make up the higher value.
So we now have 2 mortgages (top up was 2 year fixed rate with same company).
Now our first mortgage is up for renewal. How do we deal with this? Can't seem to find an answer. When I use a comparison site, it says we have 55% LTV but obviously that's not taking into account the top up mortgage.
Any help greatly appreciated!
We brought our first house in July 2010 with a fixed rate 3 year mortgage 85% LTV. We recently (Dec 2012) moved into a bigger house and took some of the equity out of our last purchase to do some renovations. As we had a hefty early repayment fee on the other mortgage, we just topped it up to make up the higher value.
So we now have 2 mortgages (top up was 2 year fixed rate with same company).
Now our first mortgage is up for renewal. How do we deal with this? Can't seem to find an answer. When I use a comparison site, it says we have 55% LTV but obviously that's not taking into account the top up mortgage.
Any help greatly appreciated!
First baby due 3/3/14 - Team Yellow! Our little girl born 25/2/14 
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Comments
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If your tied in on the other part of your mortgage you have 3 options - move elsewhere and pay any ERCs on the other part of the mortgage, leave it where it is and stick to the SVR or ask your current lender what they have available.
You cant just move one of the mortgages and not the other.
The LTV is the balance of the full mortgage.I am a Mortgage AdviserYou 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.0 -
Who is the lender?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
We'll face this situation in a years time and know we will pay the ERC on the top-up in fixed to secure a far better overall reduced rate.Thinking critically since 1996....0
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I'm not paying the Erc as its nearly 4k.
We are with accordFirst baby due 3/3/14 - Team Yellow! Our little girl born 25/2/14
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The Accord reversion rates are normally not very kind to the borrower.
This is a classic issue.
Two funding elements from one lender on different end dates with early redemption penalties means they have you every which way.
Switch one element as it ends and you are tied back in.
Leave it on the reversion rate till the product on the other element ends and you pay more.
Plus you usually pay a product fee on each element switch.
I hope this new property was worth it.
You need to do the maths carefully.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
New house was definitely worth it. We only topped up with a minimal amount. It's annoying but I guess it might actually be worth just paying the early repayment charge to transfer it all over. Or we could just stick with them until the next mortgage is up and then run the top up on the SVR for 7 months.First baby due 3/3/14 - Team Yellow! Our little girl born 25/2/14
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