2 mortgages should i remortgage into 1???

austincource

Hi advice requested.


We have 2 mortgages.
Nationwide:
1 is on base rate 0.5& above bank of England £90k (no penalty)
2 is on 2 yr fixed rate 3.79% 107k (penalty fee for moving)
Property value 270k


How do I work out if its worth moving it all to say first direct mortgage on 1.99%


Any guidance would be most appreciated.
Kindest regards
L

austincource

Please can someone respond and offer advice

how do you work out the best rate if you need to combine 2 current mortgages into one?

Thanks in advance

brendon

Are the mortgages on one property? Or two separate properties?

To calculate the rate you are paying now, just take a weighted average:

(107 x 3.79 + 90 x 1) / (107 + 90) = 2.52%

So think of your two mortgages as one mortgage of 197k with a rate of 2.52%, plus the penalty charge from #2.

Obviously, you need to factor in the penalty charges and initial costs of the mortgage to do a fair comparison.

AnotherJoe

austincource wrote: »

Please can someone respond and offer advice

how do you work out the best rate if you need to combine 2 current mortgages into one?

Thanks in advance

Need to know the penalty as it might not make any sense to end that early.

But I suspect you'd likely be better off keeping such a good low rate and doing something with the 3.79 when the term ends.

getmore4less

austincource wrote: »

Hi advice requested.


We have 2 mortgages.
Nationwide:
1 is on base rate 0.5& above bank of England £90k (no penalty)
2 is on 2 yr fixed rate 3.79% 107k (penalty fee for moving)
Property value 270k


How do I work out if its worth moving it all to say first direct mortgage on 1.99%


Any guidance would be most appreciated.
Kindest regards
L

Not enough info to work out if a move would be worth it

What rate is part one?

need payments, terms, time left on the 2 year fix and penalties.