Two part mortgage

KingBilly

Hi,

I have a two part mortgage with the same provider, the smaller part was for additional borrowing a few years ago. The tied in period for this smaller part has now come to an end, am I within my rights to move this part to a different provider?

Thanks,
B

kingstreet

You would need to move the whole mortgage to benefit from lower rates.

If you move only the additional borrowing it would have to be on a second charge basis and would have a higher rate as a result.

KingBilly

Thanks, but I could move it if I wanted to a new provider though the new provider would charge a higher rate as its a second charge, is that correct?

kingstreet

KingBilly wrote: »

Thanks, but I could move it if I wanted to a new provider though the new provider would charge a higher rate as its a second charge, is that correct?

Yes. You would need a finance house offering secured loans as high street lenders are looking only for first charge business.

If your further advance is on high street SVR type-rates of 4% to 6% expect it to increase to 8% to 12%.