Part Remortgage

DLaws2206

Hi, hopefully someone can help - I have a mortgage with Santander but it's in two parts. We moved relatively soon after getting our first mortgage and so had an additional loan to afford the higher priced house. The first part of the loan is coming up to the end of the fixed rate deal and so is set to increase to the SVR. My question is, do I need to stick with Santander for this part of the loan or can I go to another provider with just that part and get a better rate? The first part finishes in October 2015 and the second part doesn't finish it's fixed term rate until April 2016. Any thoughts on the best course of action? Many thanks, David

Thrugelmir

What you now have is 2 sub accounts under the same mortgage charge. So it's not possible to remortgage part to another lender.

Maybe worth asking Santander what they can offer you before weighing up your options further.

kingstreet

You have one "first charge" over your property. This gets you the best rates.

If you attempt to move only part of your homeloan to another lender, that will have to be on a second charge basis and as a result the rate will be considerably higher.

You will be batter off waiting for your other sub-account to fall out of penalty and ask Santander for a customer retention product for both sub-accounts or remortgage the lot to a new lender where the new lender will then have the first charge.

DLaws2206

Brilliant, thanks both, will contact Santander first