Two part mortgage - should I merge

dogbytes

I currently have a two part mortgage on my house with the same lender. I moved house last year while still in the middle of my mortgage deal with them, so it made sense to keep the current mortgage with them and then get the extra borrowing needed from them as a separate part.
Part 1 of my mortgage is up for renewal next month - once that ends that part of the mortgage will move on to a higher standard variable rate. This is the largest part of the mortgage and moving to standard variable will cost me about £50 extra per month over what they are offering me as a new 2 year fixed rate.

Part 2 of my mortgage is not up for renewal for another year.

As the lender is offering me a new competitive rate on Part 1 - signing up for this I would avoid the extra cost of moving to standard variable rate, but it would tie me in with them for another 2 years.

Is it better in the long run to not sign up with the new 2 year rate, and then next year merge both parts in to a single mortgage ?

My thinking it that while I continue to have my mortgage in two parts with them, I can never move to another lender without paying off one part.
Also having two part mortgage means I pay a product fee (if applicable), every time I renew each part. So extra possible expense there.

I know this is a very difficult question as a lot depends on my personal finances, my future plans etc. I'm just wondering if it's generally considered bad to have a two part mortgage, and a better long term option to merge it in to one ?

getmore4less

Just moved not likely to move soon
why not look at say a 3y and then a 2y on part 2 so they sync up in 3years.

You will have to crunch the numbers but with no details how can anyone else even stab a guess.

dogbytes

Cheers, yeah that might actually be a good idea. Will be meeting the lender this week, so will see if they have any 3 year options.

Thrugelmir

dogbytes wrote: »

My thinking it that while I continue to have my mortgage in two parts with them, I can never move to another lender without paying off one part.

Your entire existing mortgage will be settled as part of the transfer. If the available products are fee free. Then do what's right at the time. Worry about the future when you actually need to.