Splitting mortgage between two providers?

lcc86

I'm not sure if this is possible, I have a mortgage with Lloyd's and it's split into two different products (I can't recall why now). One came up for renewal in October so we fixed it for 2 years. The other part has just come up for renewal and I've seen much better deals with other banks. Is it possible to fix this part of the mortgage with another bank? If so does it just make things unnecessarily complicated moving forwards?

sammyjammy

The new company would have second charge on your property so are unlikely to lend to you on a normal mortgage basis in which case it would be at a different higher interest rate to their normal products.

amnblog

No - the deals you have seen would be for a single mortgage on the property. That would be secured under a 'First Charge'.

As Sammy says, another mortgage lender on the property is only possible if they will take a 'Second Charge' - this puts them behind the First Charge holder in priority to receive funds on a sale, re-mortgage or repossession. As this is obviously more risky, the rates for Second Charge lending are much higher.

lcc86

Okay thanks both, I did think it would cause problems. They run out within a couple of months of each other so next time the first is up for renewal I'll go onto SVR for a couple of months until the second one also comes up and then fix both together, otherwise i can foresee being tied to the same provider forever!