2 part mortgage - can i move one part?

Ivrytwr3

Hi and good morning all,

We currently have a 2 part mortgage with A&L on the same property (recent value of £225k).

One part of the mortgage stands at £53k @ 1% and the other part at £21k @ 3.99% with 7 years to go.

For the part at 3.99% we currently pay £290 with £200 over-payment per month which brings the term down to 3yrs - yey!

Can anyone advise, should we stick with what we are doing or should we be looking for a better rate on the 3.99% part of the mortgage?

Any idea of Santander current rates? I can't access the rates as my mortgage was with A&L now held by Santander :mad:

Thanks.

V3cash

I think it's hard to get good mortgage deals on amounts under £30,000
So part 2 is too small on its own
Have you looked at adding together and going for re mortgage
Some brilliant low rates out there for amounts over £30,000

Or what i did when my mortgage
had 2 yrs left and only £13,000 left was get a 2.8%
2yr loan Sainsbury's
I would compare both ways

Ivrytwr3

I don't think i would get a better rate than 1% on the larger loan or when combining both parts. This is why i was just looking at changing part 2.

But interesting idea about getting a loan to pay it off!

Thrugelmir

You have one mortgage (the legal charge on the property) and two sub accounts (loans). Move all or not at all.

Seems as if you are taking the correct course action already. Continue to over pay by as much as you able. Let the other account run it's natural course.

getmore4less

what are the real details of the two parts?
SVR's, trackers fixed...

Any ERC on the overpayments on part two?

if no ERC there is plenty of cheap money on 0% purchase credit cards.

part two

£21000 3.99% £490pm. interest £1,693 and paid off in 47 months.

Not sure how you got 3 years?

The most you can save(0%) is £1693, 3 payments worth.and a bits worth.

say you could get that down to 1.5%
£21000 1.5% £490pm interest £597 45 months
Start throwing some fees in and the savings are not so good.

There are options and I think you could save £1k with a bit of money juggling.

Ivrytwr3

Part 1:

£53k remaining, SVR @ 1%, £295 ERC and 12 years 10 months remain.

Part 2:

£21478k remaining, SVR @ 3.99%, no ERC and 7 years 5 months remain.

Looking at the MSE overpayment calculator, if i overpay part 2 by £200 per month:

Normally you repay £293 per month. If you regularly overpay £200, you'd be mortgage free 3 years and 0 month earlier. Your total payment over this period would be £23,237.

So, yes, 4 years, not 3 years left if i overpay.