Merging Mortgages

stevenbep3

Hi all,


First post on here.
I am unsure of the correct term but my mortgage (repayment type) is made up of the mortgage deal I had on my previous home along with a top up for my current home.


We agreed a new mortgage term on our old property and then sold it 3 months later. Hence the top up situation.
Now, the smaller mortgage part from our old home is coming up to the end of the fixed rate term (March 2017) and the lenders letter says I can choose a new term or go onto the Standard Variable Rate (SVR).
Looking at the lenders rates I can see some attractive deals on there.
My mortgage adviser is saying to wait until the top up mortgage deal ends and combine the two. The top up part is not due until August 2017 but that means I could probably get something sorted in May 2017. My Mortgage adviser thinks she may be able to negotiate agreeing a new combined mortgage earlier than planned.


I know I can likely lower the monthly payments now and stick with having two parts of the mortgage.
I know that when the bigger top up part is due for renewal we could further save money there.


My question is really, do I act now and choose my term or take up the mortgage advisers advise and switch to the SVR on the smaller mortgage part and wait until I can combine both?
I guess it's a simple task of the maths....but as yet, I can't make a decision as I can't see what the rates will be for the bigger top up part of my mortgage.


Anyone is a similar situation and if so, what did you do?


Thanks all. It's more of a reassurance thing I'm looking for.

erin110

It is hard to say without knowing the figures.


If its important to you to have both parts of your mortgage on one deal then I would listen to your broker. The benefit of doing this is convenience, for example you may then only have to review your mortgage once every two years rather than ever year.


Once part two ends your broker should then be able to compare the market for you and remortgage you to a new lender who will be offering a more favourable rate then your current lender. I say this because if your current lender is offering a rate that is lower than the rest of the market your mortgage broker should advice you stay with them and just switch your product.


Alternately if its about saving money now and not reverting to your SVR rate which I expect is higher, you can re fix with your existing lender and you will just continue to re fix each time each of the parts are due up for renewal.


In some cases your lender may offer a product with no early repayment penalties such as a tracker that you could potentially take in the interim.


Also some lenders will allow you to come away from your deal early without a charge providing you stay with them. You can sometimes do this as early as 6 months so It may be worth speaking to your lender too. However, moving away from a deal that early could impact historical advice.