Staircasing + Nationwide = 2 mortgages instead of 1?!

xnoxxnox

Hello,

I have a shared ownership property 25% with a Nationwide mortgage. Currently, I'm at 60% LTV, or 40% equity. I would like to staircase to 50%, thus double the property value, half the equity and end up with 80% LTV.

I went to nationwide website to look at mortgage rates under "existing customer switching deals" and I thought I'll get the 80% LTV rate from there.

Called them up, and they say that staircasing is "additional borrowing" and that a second mortgage account will be setup. Looking at the additional borrowing rates - it's higher than 80% LTV switching deal rate. And given that I'll keep my current mortgage too, the average mortgage rate on my total debt will end up being a lot more than just a single 80% LTV rate.

I'm not happy.

Is it possible to remortgage with nationwide, such that I have just a single mortgage account with them after staircase is completed? Or do I need to remortgage to a different provider? I'm guessing solicitor fees will be more for remortgage vs additional borrowing.

Regards,

Dimitri.

kingstreet

If you don't want the further advance from your existing lender, your only option appears to be a remortgage to a new lender.

xnoxxnox

I want remortgage from the same lender. Because my property value is changing, I want increased term, increase loan amount, higher LTV. Somehow I now feel mislead that I cannot do this. Because I was told I will be able to staircase my mortgage. Sounds like a rip-off to have two mortgages, instead of one big one; as the rates and fees are more favourable for a single big one. I'll book an appointment with a mortgage advisor I guess.

kingstreet

As there is no change of mortgage deed you aren't remortgaging.

You are asking your lender to grant a further advance at new business rates and it doesn't want to do that.

Sadly, from your point of view, it's take it or leave it I'm afraid.

xnoxxnox

As I am going through the process, it looks like there are actually no disadvantages whats-so-ever with nationwide to having two mortgage accounts instead of one. The LTV is counted on the overall borrowing, yet the mortgage rate, term, monthly payment, direct debit etc. Can all be different for the two accounts giving me the ultimate flexibility. When it comes to renewing the mortgage deals, one only pays a single fee when moving both accounts at the same time to a new deal - so that saving is still available.