Remortgaging part of your mortgage - is it possible?

[Deleted User]

somethingcorporate wrote: »

You should be able to direct your overpayments to a single sub-account of your mortgage. Our nationwide one you can see both elements as separate mortgages we can treat individually.

Who is your mortgage with?

RBS.

Ah yes Iguess so. I was thinking of bit extra per month rather than lump sum.

kingstreet

[quote=[Deleted User];69618319]One idea - could I borrow £7K extra on mortgage (to take it over £25K) so I can get a deal.

Then use this £7K to pay off the balance :-)

(Although possibly theres a limit on overpayments per year - no sure)[/QUOTE]
No. If you attempt to borrow more, that will form a third sub-account.

Each one reflects a point in time where you borrowed money.

[Deleted User]

kingstreet wrote: »

No. If you attempt to borrow more, that will form a third sub-account.

Each one reflects a point in time where you borrowed money.

Ah I see.
But at the moment I have sub-account1 with £18K outstanding.

So I'd have to ask for another £25K (since £25 is the minimum) so they'd create a sub-account2. Then I could use £18K of that to pay off sub-account1.

Then theoretically, I could use the £7K left to pay off part of sub-account2.

Leaving me with sub-account2 £18K but at better rate.

Of course, assumes:-

1. They'll lend me £25K more.
2. There are no huge set up charges.
3. There are no charges for early payment of these sub-accounts.

[Deleted User]

Will this work as above?

ViolaLass

Any set up fees would be better spent overpaying the first sub account. The amount you owe is so low that the interest rate won't be making much difference to your payments.

getmore4less

They should offer retention deals on any size of sub account.

the existing customer change deal calculator accepts £18k
http://www.rbs.co.uk/personal/mortgages/g2/repayment-calculator.ashx

[Deleted User]

getmore4less wrote: »

They should offer retention deals on any size of sub account.

the existing customer change deal calculator accepts £18k
http://www.rbs.co.uk/personal/mortgages/g2/repayment-calculator.ashx

Interesting - they told me £25K minimum!

[Deleted User]

ViolaLass wrote: »

Any set up fees would be better spent overpaying the first sub account. The amount you owe is so low that the interest rate won't be making much difference to your payments.

Yes I would agree. Pointless paying a setup fee.

Looking at the calculator - getting a 2 yr fixed at 2.5% is not much better than leaving it at 4%. About £13 a month.

But still.. Better than nothing...

Goldiegirl

[quote=[Deleted User];69800049]Interesting - they told me £25K minimum![/QUOTE]

It may have been because you were asking them the wrong questions- if you phrased it as 'remortgaging' (like you have done in this thread), they may have got the impression you wanted to borrow more money.
just say to them you want to transfer the £18000 currently on Svr to a customer retention interest rate, and ask what they can offer you.

That makes it crystal clear what you are asking them for

[Deleted User]

Spoke to them again and explained. Nope. Minimum that can be swapped to another product is 25K.

I did ask about borrowing £25K. As kingstreet says this would mean another sub-account with £25K.

I asked if I could then use this to pay off the £18K subaccount (leaving just £25K sub-account) but I think the person on the phone was a bit confused. I guess one problem could be a limit on max overpayments per year (although I vaguely remember that this only applied during the special offer period - not not now Im on SVR).

Think best best is to speak to a mortgage advisor in the branch.