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Mortgage and additional borrowing help

Hello

Today I applied for additional borrowing as I'm buying a higher priced property

Im tied in with my current deal at 1.85% until March

I've asked for additional money therefore I'd have to tie in for 2 years on a separate deal

These 2 payments will always be separate so at some point will have to pay Early repayment charge at some point

Problem is if I paid it now my rate would go up to 1.95 on all the loan plus I'd have to pay a set up fee

Not sure what's best to do

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    The ERC will be voluntary if you get your timings right on retention deals or moving lender.

    Might need one bit on a higher rate for a short time.

    A lot of lender deals are not really full years and they allow change early so it iis possible to get the gap smaller over time

    If your lender does 2 and 3 year you can probably sync up in 2 cycles.
  • Can you have this new additional mortgage on a variable/tracker rate with no ERCs?
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