sub mortgage

lowsm

I have 2 parts to my mortgage.
Both with RBS, one is on a rate of 1.6 % and the other 3.05%

This is called a Sub Mortgage, does anyone know if I can keep the 1.6% with RBS but move the 3.05% to another lender if I can get a better rate ? Or does a Sub Mortgage mean they both have to stay with the same lender ?

Thanks

kingstreet

No you can't. Not the way you would like, anyway...

You have one mortgage (the deed tying your property to the loan as security).

The loan has different sub-accounts to represent different amounts borrowed at different times.

If you wanted to borrow to repay one of the sub-accounts, you would have to do that on a second-charge basis and the rate would be higher than any normal first-charge residential mortgage product and therefore, pointless.