Remortgaging with two loan parts.

tommypembers

Last year i moved house and my current mortgage of £300,000 consists of two parts both with the same lender. £100,000 is on a fixed rate product that expires in 2020, this mortgage was taken out when i was in my previous house. The £200,000 was the extra i needed to borrow to buy my new property, this is on a low rate tracker that expires 2019.

I'm conscious that interest rates could rise in the near future and due to this would like to move the £200,000 tracker to a fixed rate. I'm able to move my £200,000 without any charges however the fixed rates offered by my current provider aren't that attractive.

Can i move the £200,000 to a different lender who is offering a better fixed rate? Means i would then have two fixed rate mortgages for the same property across different lenders.

Thanks

Mortgage_Adviser

You can get a second charge mortgage and repay £200,000 with it. However the rate is not likely to be any good.
Can you fix it with your current lender?

tommypembers

Yes, i can move the £200,000 to a fixed product with my current lender at a rate of 2.49% for 5 years.

Using a comparison site I see that there are fixed rate products from other lenders for 5 years at 1.99%.

So my preference would be to change lender however i'm not sure if that is possible given that i'm fixed in with my current lender with the £100,000.

kingstreet

It may be possible.

You'll have to pay any early repayment charges which apply to unify the two sub accounts with a new lender.