When remortgaging, is it right that HSBC keep all account separete?

IAMIAM

Ie, if you have two mortgage accounts with previous lender (advance and further advance) they do not combine them to make one total?

Is this the same for most lenders?

[Deleted User]

Yes, as the terms, rates or other conditions may differ.

IAMIAM

Why do Nationwide and YBS combine it to make one monthly payment and HSBC not?

[Deleted User]

That's presumably their preferred way of doing it. But whether two payments or a single one, it makes no difference.

It doesn't change the underlying accounts.

[Deleted User]

They will do it as some lenders want to keep continuity on the account.  Some lenders don't allow debt con where debt con has happened before.  By keeping it as separate accounts they can see what people have borrowed for even if it was a different lender.

It might not be exact as most details will be lost but if they get an application in for additional borrowing, the underwriter will be able to see its not the first time that additional funds have been borrowed on the mortgage and perhaps ask questions around that to ensure its the best thing to allow it to go through. 

Not all lenders care which is why not all lenders do it. 

Also, hsbx only release the exact amount on a remo to clear the old mortgage. So if you've applied for 150k and the balance on date of completion is 149600, HSBC will only release 149600.  They are fairly unique with this but I think it's because they don't want to be seen to be increasing debt for no reason.  Keeping sub accounts as they remortgage across allows them to only release the exact funds for each part and still keep it visual as to what the old mortgage was

IAMIAM

This uniqueness is what I found odd. Most lenders do amalgamate when you remortgage.