We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Are multi part mortgages normal and can you merge them?

Options
I'm looking to remortgage my current fixed rate mortgage with Halifax as well as borrow some more to pay off my help to buy equity loan + borrow some for a new car. HSBC are offering me a multi-part mortgage, one for the remortgage amount, one for the help to buy equity loan and one for the additional borrowing.

Is this normal? Is there any way to merge them to make the admin side of things easier i.e. if I make an overpayment, which one would it go to? Also, when my fixed period comes to an end, would it be straightforward to remortgage or would there be issues with it being multipart?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 29 November 2021 at 9:46PM
    Perfectly normal. There is only one mortgage charge placed on the property. The loan(s) are no different to any other. Other than that the lender holds the property as security in the event of default. 

    The biggest issue is normally consolidation, as all will have different product end dates. When remortgaging not an issue as all get repaid. 

    Ask your lender with regards to overpayments. Some spread , some allowed nominations. 
  • dhokes
    dhokes Posts: 332 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Perfectly normal. There is only one mortgage charge placed on the property. The loan(s) are no different to any other. Other than that the lender holds the property as security in the event of default. 

    The biggest issue is normally consolidation, as all will have different product end dates. When remortgaging not an issue as all get repaid. 

    Ask your lender with regards to overpayments. Some spread , some allowed nominations. 

    I'm opting to reduce my current mortgage term slightly so its rounded to a full year so all three parts should have the same end date.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.