Remortgaging with 2 loan parts

Our current mortgage is made up of 2 parts with Santander. One part is on a very low 2.09% interest rate and that deal comes to an end shortly. The other part is on 4.71% (taken out recently when we moved house and ported our original rate) and will have a further 4 years to run and a reasonably hefty £8k early repayment charge. Ideally I would like the 2 parts to come into sync, but that may not be possible at this stage. As far as I can tell I have 2 options:

1. Remortgage the single loan part with Santander.
2. Remortgage both parts at the best rate available and borrow additional to pay the early repayment charge.

Has anyone else been in this position before and what did you do? 

To add complication, my wife will be coming to the end of her maternity leave at the point of the deal ending so her earnings will be significantly down. Is this likely to be a problem?


  • amnblog
    amnblog Forumite Posts: 12,224
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    Rates have moved up since you secured 4.71% - Option 2 is likely to leave you £8,000 down and on a higher rate across the entire loan than either of your current rates.

    If your family circumstances have changed at re-mortgage time it may affect your options with other Lenders due to affordability, it will not affect your options with Santander.

    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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