2 mortgage accounts on one property

longwalks1

Right, here goes. I have 2 mortgages in my name on 1 property, both are with Barclays. Its because I moved 3 years ago the additional i borrowed was on a 2nd, smaller account with them. Basically I owe:

£122k - fixed period ends Dec 17
£90k - fixed period ends Jul 18

I'd like to fix again for possibly 5 years and am happy to stay with Barclays. Should i basically arrange both again as 2 mortgages, so i can secure fixed terms on both, when they are ready to be renewed? Or is there a way of combining the 2 into one?

Any advice greatly appreciated

dimbo61

We have been now waiting for a bank of England rate rise for what 7/8 years and it may happen soon So 0.25 or maybe 0.5 before Xmas.
How much difference that will make to remortgage deals from Barclays I have no idea.
You could go onto the SVR after Xmas and wait a couple of month to get a new deal for both parts.
I would be speaking to Barclays now and asking them the question

longwalks1

Thanks Dimbo61, I'll get an appointment in branch with them this week or next (hopefully)

Will they need to do another income search, or not seeing as I've been with them for about 6 years now (3 years at my old house) and never missed a payment? Reason I'm asking is 3 years ago i was earning 30% more (a lot of overtime, continually over a period of 2 or 3 years)

Thrugelmir

You have one mortgage with two sub accounts, i.e. products. If there's no fees involved for new products. Then having separate accounts shouldn't be an issue.

If you are seeking advice then they are duty bound to check your personal circumstances. As recommendations have to be based on fact not simply what the applicant discloses. Neither the regulators nor the lenders don't want a repeat of the PPI claims saga. To avoid this apply on line.

dimbo61

If you are looking to take a new product ( say a 5year fix)
Without borrowing any more money or changing the term you can usually apply online without having to go through a full application.
Have a look on the Barclays website to see what deals they have for existing customers.

glosoli

In terms of whether it would involve an income / expenditure check, it likely will, unless the two overall maturity dates are exactly the same. If there is a difference in the overall maturity dates, then it will either be a term increase, or a term decrease, depending on the set up of the new mortgage, which generally requires the bank to verify affordability. If the two overall maturity dates are exactly the same, you may get away with not having to evidence income, as nothing is changing other than the accounts simply being merged. That being said that is only my experience of this, and may not be reflective of how Barclay's will approach it.

dimbo61

So if you go into the branch and ask for ADVICE they with have to go through everything.
However if you apply online and pick a new deal yourself you are not taking ADVICE

dimbo61

Barclays have a number of 5year fixed rate deals.
Depending on your LTV you can get 1.75% to 3.25%
Have a look on the website
Barclays can do a desk top valuation of your property ( without a surveyor visiting the property )

amnblog

No, you cannot combine the two elements into one.

You can secure a new rate on the £122K now and the £90K in May.

Don’t waste time in Branch, have a Broker assist you.

Be swift as the purchase 5 year rates went up last week and the Reward (existing borrower) rates may not be far behind.

longwalks1

Thanks again all, will take a look online and renew the 122k when it expires next month, and wait and do the 90k in 7 months time.

When im looking at the comparison tables, when looking for a new deal for the 122k loan, do i use the LTV as 122k of 420k (house value)

Or still look for the LTV to be of the total outstanding? (212k of 420k)

dimbo61

It is the total amount outstanding to work out LTV
Have a look online tonight and apply ASAP ie tonight.
You can often book a new deal up to 3 months in advance
If your Property is worth £420K and your outstanding Mortgage balance is about £212K then you are 60% LTV and should get the best rates.
Up to you if you fix for 5 or 10 years IF and only IF you have no plans to move ?

PS this is a big decision and you may want the help and advice of a mortgage broker before taking the plunge