2nd mortgage

Ross95

Hi


I want to borrow another 15000 on to my current mortgage but unfortunately my fixed rate doesn't end for 2 and a half years and I have an early repayement charge of £3890 if I was to remortgage with the added borrowing included.I don't want to have to add the charge to my original mortgage as well as the xtra £15000.
I am currently with nationwide and they are offering a 2nd mortgage borrowing the £15000 I require.If I took the 2nd mortgage to be payed over 20 yrs as is my original mortgage when both deals end and I can remortgage both deals at the same time can they be put together instead of 2 separate mortgages?
Would other lenders be willing to put both deals together or do Nationwide have some control?

kingstreet

If you take additional borrowing from current mortgage lender, you still have one mortgage, but two sub-accounts form it.

Your options;-

additional borrowing or further advance from existing lender

- your existing borrowing is unaffected, so no damage from ERPs and you can try to tailor new borrowing to end date of current so you can renegotiate terms on customer retention products at the same time, or remortgage the whole sum to new lender

secured loan/second charge

- existing mortgage remains untouched but instead of taking additional borrowing from existing mortgage lender, you get this from a third party, normally a finance house. Rate can be higher, but possibly with greater payment flexibility

remortgage

- you go to a new lender and borrow enough for your new requirements and to repay the old mortgage. ERPs would be payable on existing mortgage as it will be repaid.

Better overall rate may result though.

Ross95

If I managed to get both end dates close so I could potentially switch to a new lender would the 2 sub accounts then become 1 mortgage?
Also if I renegotiate both deals with my existing lender would I have to keep sub accounts or would they make it just the 1 mortgage?