two mortgages on one property?

joddlebug

i'm hoping someone can make this easier to understand
i have a Barclays mortgage and plan to move house, i'll need a mortgage at least double what i currently have

when i spoke to Barclays they say i can keep my current mortgage and get another, 2nd mortgage for the extra, so i'll have two different mortgages at two different rates/terms etc

my first question was which would be paid of first? (obviously i'd want to be the higher rate one) but they were just so vauge and wouldn't answer anything directly.

my current mortgage is wonderful and i would like to keep it (its tracking forever @ below base rate and a great find) but they were desperate to get me into branch for a discussion rather than just explaining by phone, (apparently my 2nd can't be interest only and lots of other vague restrictions they wouldn't clarify).

does anyone else have two mortgages like this - does it work or is it an admin/clarify nightmare?

kingstreet

You don't have two mortgages.

You will apply for a new mortgage as the old one will be repaid from the sale proceeds.

You'll have one loan split into different sub-accounts to represent the old rate you will port from the old mortgage and the new rate for the new bit of borrowing which is part of the new mortgage.

Trying_to_be_good

You should be able to choose which (sub) account any overpayments go to, so you'll want to choose the higher rate (sub) account for any overpayments.

You'll need to continue the regular payments on both accounts, which is likely to be a single payment that Barclays will split between the two (sub) accounts.

Is the original mortgage interest only? If so, have you been overpaying to reduce the capital owed, or have another plan to repay the capital? You're very unlikely to get interest only now (for the additional borrowing, at least), so your monthly repayments will include the capital as well as interest.

Thrugelmir

joddlebug wrote: »

they were desperate to get me into branch for a discussion rather than just explaining by phone,

There's due process which has to be followed. If the matter is going to progress further.

Obgreen

You should be able to "port" your existing mortgage deal over to the new property. The difference will be made up by a second mortgage product from the same lender. Unless I am very much mistaken the "term", i.e how many years you have left on your existing mortgage product will have to match the term on the second part of the mortgage for the new property. You shouldnt have one part of your mortgage ending before the other, although just clarify this with your existing lender.

joddlebug

IF it's to progress yes - but when you've young children 24/7 getting into brach to have a grown up conversation is next to impossible - i wasn't asking for advice or opinion but flat out explanation of their product - if they can't / won't give that by phone they've gone seriously down in my estimations - other banks haven't had this issue
they're focus was more on sales than allowing the customer to make their own educated decision imho

joddlebug

thanks to everyone who mentioned sub accounts - it's very obvious when you realise.

the mortgage was ING who've passed it via woolwich to barclays and tbh i'm seriously unimpressed with them so it might just be time to get a whole new mortgage with a different company though after speaking to 4 different people for a redemption figure and still being told i need to speak to someone else, that may be easier said than done!

amnblog

Use a mortgage broker who can...

Advise you correctly

Handle this matter in a manner convenient to you

This will manage this will Barclays on your behalf if appropriate.

Spangled

amnblog is quite correct - get a broker to do the legwork for you. Especially if you're juggling young kids (not literally, but you know what I mean ).

If you've got a tracker at BELOW the base rate, chances are you should try to hang on to that rate. A broker can advise more fully on all your options.