Two mortgages on one house!

j.f.s

We are moving house but are in a fixed rate with 1 year left. The early repayment charge to get out of this would be £1,800. Instead of paying this charge and adding to our existing mortgage or mortgage advisor at yorkshire bank is telling us to stay in the fixed term and get another mortgage for the extra money we need (£30,000) and this will cost us a product fee of around £500.

Our situation is:
Do we pay the charge and add to our existing mortgage and have the same term time left (20 years)
or
Keep in our current mortgage and get the second mortgage (which the advisor is suggesting for 37 years) so we wouldnt have to pay the charge

and then his plan is when our fix term ends to put the two mortgages togeather, is this even a thing?

Thank you

silvercar

and then his plan is when our fix term ends to put the two mortgages togeather, is this even a thing?

Yes. Take the new mortgage on the lenders svr, or some deal with no penalties for early withdrawal, then combine the two parts when the current part deal finishes.

You are really getting one mortgage with two parts. Both parts will be with the same lender.

j.f.s

Right I see, I've never heard of this. So in 1 years time when the fixed term ends I can lower the term time of the second part and it will all be 1 mortgage with 29 years left?

Thanks for the info btw

j.f.s

19 years sorry not 29

getmore4less

What rates are these various options?

aussie_in_wales

I did this with my mortgage. I effectively have one mortgage with two separate parts.

Sold one property which still had 2.5 years fixed mortgage, ported it to my new house then added the extra money I needed on a 2 year fix.

I didn't need to increase my mortgage term as I was able to pay the extra monthly cost.

I'm curious as to why your advisor has said you need to extend the term? Can you afford the monthly payments if the term of the mortgage remained the same? Perhaps you could ask if this hasn't been tried as yet.
Mine went up about £300 a month on a similar amount added to my mortgage (just over £33000) as I wanted to keep my mortgage term the same. Or is there another reason as to why the new part of your mortgage needs to be for longer?

j.f.s

We told him we would be able to pay a extra £150 a month and this is what he came up with. He told us when that fixed term ends in 5 years to lower the term time when we can afford it. so we would have 15 years left on both parts