2 part mortgage with different fixed term end points

gregc

I've got a question about the situation you end up in when you have your mortgage in two parts (same bank), that have different fixed term end points. Is there something I should do differently now to avoid this, or what are likely to be sensible plans for the future?

We are hoping to move from our first house. Our mortgage (which has moved lender a couple of times to best rate) is a fixed term ending Jan 2021, with TSB, and is portable to the new house. However we need to borrow 50% more. The proposed situation is that it would end up on a seperate part of the mortgage, at a good but subtley different rate. But this second portion would end Jan/Feb 2022. So we will have two portions of the mortgage with the fixed term end points around 1 yr apart.

I'm trying to work out how I would ever change lenders again with this situation. TSB only do fixed term mortgages as far as I can work out.

General options I can see so far: Any others?
Any general ideas about which is likely to be better plan, definitely a silly plan, what people generally do?

1. Let first mortgage go onto the SVR for 1yr (4.24%).
2. Leave the 2nd smaller mortgage earlier, and pay the early repayment fee.
3. Get a 3 yr fixed on the first when it finishes, and a 2yr on the second, so the ends are roughly aligned. So only 3 yrs longer than current.
4. Stay with TSB forever continuously updating the fixed deal with them. Can they be merged into one if end date became aligned?

I think it's a case of doing the maths between 2+3?

phillw

gregc wrote: »

I think it's a case of doing the maths between 2+3?

You ought to do the maths on every option.

Including buying out of the existing TSB mortgage.

Do they not have a one year fix for the 50%? Then they'd roughly end the same as each other.

getmore4less

You also have the issue that combined there may be fee deals that are a better option and they don't work when in 2 parts.

if the total would still be under the fee deals having 2 bits can work in your favour if with a lender that has decent retention deals.