How To Re-Mortgage Multiple Sub-Accounts

Complex

Hello,

I was wondering if someone on the forums would be able to guide me in the right direction regarding a re-mortgage predicament I'm in!?

I currently have a mortgage with HFax under 2 sub-accounts, the details of such are as per below (without financial values).

Sub account 1
>£50k
Current Rate: 3.89%
Fixed until: 31 Aug 2020

Sub account 2
>£100k
Current Rate: 2.06%
Fixed until 30 Nov 19

Therefore sub account 2 is due to expire in November and I need to look at getting on to a new rate. HFax are not offering very competitive rates and therefore I'm unsure how to deal with the above. Would I remortgage to another provider with sub account 2 and leave 1 with HFax or? How would it work with regards to LTV?

Alternatively am I best paying an early exit fee on the sub account 1 mortgage and moving it all together somewhere with a better rate?

Thanks in advance for the help!

kingstreet

You remortgage all to a new lender.

A first charge is required over the property and Halifax currently has it, so you can only give it to another lender when the entire Halifax loan is discharged.

To avoid ERCs, you would have to wait until both sub-accounts are ERC-free. Otherwise, it's Halifax customer retention products as each sub-account's product expires.

Paying the ERC? Who knows? It might be a good idea, or it might not. Not enough here to judge.

Complex

Thank you.

My sub account that expires next year is c£58k with a 2% EPC.

Looking at H$BC I can get 1.99% fixed for 5 years with a £999 product fee. The mortgage about to expire is c£175k.

I think that switching even given ERC works out best for me?

Thanks

aussie_in_wales

Perhaps also do the sums on going onto the SVR for a few months on the November mortgage until it catches the August one. It may work out better than paying the early redemption fee

Complex

Looking online, the SVR is 4.24%! If I have done the maths correctly I think going from a 3.89% to a 1.99% interest rate for 12 months on the outstanding balance pretty much covers the cost of the ERC!

Further, allows me to lock in at 1.99% for a 5 year term!