2 mortgages but one up for 'renewal'

henrietta

Background is, we moved to a larger house last year and the BS said instead of taking out a whole new mortgage we should just take on another for the extra.
It made sense as the old one was still on a lower fixed rate.
That is up in Jan and we need to work out what to do.

The questions are do we have to have both mortgages with the same BS/Bank?
If not, what are the implications of having 2 mortgages with 2 different companies?
Not sure what other questions we should be asking.

Any advice would be greatly appreciated.

Thank you

silvercar

If not, what are the implications of having 2 mortgages with 2 different companies?

The second mortgage would need to become a secured loan and the rate would be high, forget this option!

You either:

1) put the first one onto a deal that has no ERCs, then wait for the second one to finish and then tie them together.

2) put the first one onto a deal that finishes near enough with the second, then tie them together.

3) put the first one onto the best deal you can find and then worry about the second one when that finishes.

Which works best depends on the amounts and rates involved and also the ERCs on each deal.

Until a point when they both finish or are out of ERCs, you won't be able to move lenders (without incuring ERCs) so your future options are more limited.

Or

henrietta

thank you, that is very helpful
this one is very small so we will probably get it to tie in with the big one when that is up.
thanks very much.