Tips for re-fixing 3 part mortgage

george4064

Hi all,

I and my partner (31m and 29f) currently own a house worth c. £709k with mortgage of c. £422k (59% LTV), with NatWest and split into 3 parts as shown below:

Part A: £252k, Interest Only, fixed to November 2026 @ 1.28%
Part B: £74k, Interest Only, fixed to December 2023 @ 1.89%
Part C: £95k, Repayment, fixed to December 2023 @ 1.89%

Parts B and C were ported and converted to part and part from a previous property, whilst Part A was a new mortgage taken out to fund the purchase (with B and C), where we currently live in.

When we took out Part A and restructured everything else, we agreed with NatWest that our repayment strategy is that we agreed to sell the house when the mortgage reaches maturity (about 29 years from now) which meant that the IO part of the mortgage couldn't be more than 50% of the value of the property. We have a solid repayment plan in place using S&S ISAs, but NatWest will only take this into account if we have the full IO mortgage balance in S&S ISA right now.

Starting to think about our options as we look to re-fix Parts B and C. Keen to do a tracker fix if thats the best option, but need to do more research before deciding. Also have never refinanced a mortgage for an existing property, so maybe theres some areas I'm missing!

Questions:

1. My first port of call will be to reach out to NatWest to understand what product transfers are available, but do we have to do this via our broker or can we just contact them directly?

2. Also, are we now able to make overpayments of 20% per annum? Or is that new rule coming into effect sometime in the future? Does it apply to all NW mortgages or just a select few types?

3. Considering the restrictions above, will it even be possible to transfer B and C to a different lender? Or just a bit more hassle?

4. I can only seem to find 2 year tracker mortgages, are there any longer tracker mortgages out there?

5. My partner and I both bank with HSBC, and we likely qualify for their Premier banking service but just have standard accounts. Does anyone know if their 'preferential' mortgage rates are any good? Should we bother exploring this avenue?

Any other tips or comments greatly appreciated.

Londoncheesecake

My recent experience with remortgaging with same lender two mortgages was that they kept them running again a month apart but we changed the term and product of each to suit us (went from fixed to 2 year tracker… they offered lifetime tracker but at a higher rate)
  This process was a little more in depth than ticking a box online (was a couple of calls and questions) but did not involve affordability. This was with Santander.

george4064

Bump.

Main Q is: does it really make a difference if we speak to NatWest directly vs remortgaging via our broker? In particular, does my broker have access to better rates than if I speak to NatWest myself?

MWT

george4064 said:

3. Considering the restrictions above, will it even be possible to transfer B and C to a different lender? Or just a bit more hassle?

That isn't an option without changing those parts to a 2nd mortgage, which would be expensive...

JMA74

george4064 said:

Bump.

Main Q is: does it really make a difference if we speak to NatWest directly vs remortgaging via our broker? In particular, does my broker have access to better rates than if I speak to NatWest myself?

Sometimes natwest price broker rates cheaper, sometimes they price it cheaper direct. It usually only a 0.1% or 0.2% difference but worth exploring

You should just be able to log in to your mortgage account and it will show the deals available direct.  And then you can compare to the broker deals as published at natwest intermediaries.

A lot of brokers do these types of transactions for no fee and just take the lender commission as payment.  So you might be best contacting a broker and getting all your questions answered and be no worse off than if you went direct