combining two mortgages

Rambosmum

We have two mortgage accounts on our house - one was a rate transferred from the previous house (mortgage 1) and one is the new rate for the additional borrowing (mortgage 2).


Mortgage 1 is lets say 90k, mortgage 2 is 200k (these are rough figures). Mortgage 1s fixed rate ends in September this year and Mortgage 2 in Jan next year, though I'm not sure if the mortgage term end in Jan next year (we actually took the mortgage out in September, but the rate definitely ends in Jan) I called them today and they could tell me when the rates ended - Sep 18 and Jan 19 but could not tell me when the fixed period ended for mortgage 2 - (so we would not be struck with early repayment charges.)


If it ends in Jan 19 then I think we just pay the higher rate on Mortgage 1 for 3 months and remortgage them together, amalgamating them in to one mortgage, but if it doesn't end until next September (2 years after we bought the house) then it make sense to go for a one year deal then bring them together.


Anyone know why they (Barclays) wouldn't know this and how I would find out?
And do you agree that if it Is Jan 19, waiting to amalgamate them would be best? STV is 3.99% (current Interest is 1.79%)

Pegasaurus

Probably cheaper to pay the early repayment charge then spend months on SVR.

Rambosmum

Pegasaurus wrote: »

Probably cheaper to pay the early repayment charge then spend months on SVR.

It's 3%, which would be £5500 vs the extra on the SVR for 5 months being £550. If it were the other way around (e.g. small mortgage expires next year, big one this year) then you would probably be right.

Pegasaurus

Rambosmum wrote: »

It's 3%, which would be £5500 vs the extra on the SVR for 5 months being £550. If it were the other way around (e.g. small mortgage expires next year, big one this year) then you would probably be right.

Aha! Sorry, I should have paid closer attention.

sal_III

The Lender should absolutely know all the facts like dates when rate/early repayment penalty expires. My guess is you encountered someone unprofessional at Barclays who told you porkies to get you off his/her back.

You should also have all the facts in the mortgage applications you signed. I believe nowadays it's mandatory for the Lenders to present all the summary in one place easy to read.

kingstreet

Are you planning to remortgage, or ask Barclays for a retention product?

If the latter, the two sub-accounts will always be separate and you will take new products when old ones end. The only way to "amalgamate" them is to remortgage. That means a new mortgage with a new lender.

Thrugelmir

Look at your annual statement this will state your mortgage redemption date.

What you have is one mortgage , i.e. the legal charge placed on the property to secure the monies advanced. With two sub loan accounts. These can be kept separate and run as different producrts. Or amalagamated together providing both are in the SVR period (or Barclays make an exception to allow you to do so.)

If the sub loan accounts run for differing periods of time. Then Barclays might need to review your position, in order that they cover themselves with regards to affordability checks. Before agreeing to the loans being combined as one.

minimike2

If you wait until the second one ends then Barclays will allow you to take the same product on both accounts, so if you are paying a fee for the product you would only pay it once, however as kingstreet says, you wouldn't "amalgamate" the accounts. It wouldn't offer you any benefit to do so anyway if you have the same rate across them both, other then it looks tidier on your statement.