Splitting mortgage between 2 providers

AgathaSquirrel

We currently have 2 mortgages on one property. I will inherit some money later this year and we will pay off the smaller mortgage. The fix on both mortgages finishes in September so from March I want to keep my eye out for a better deal for the larger mortgage. This could mean switching to a different provider for the large mortgage and keeping the smaller mortgage where it is so we can pay off when the fixed rate ends. Can I do this?

user1977

No, they’ll each expect a first-ranking security, so you can’t have different “normal” mortgage providers simultaneously.

AgathaSquirrel

Thanks. I’ll just need to hold fire and wait until I have the funds to pay off the small mortgage.

Typhoon2000

For clarity you have 1 mortgage but two different products on different rates. If you remortgage it would be for the total amount of the two products added together.

Yorkie1

Are both parts of the mortgage at the same interest rate?

AgathaSquirrel

Yes, they both have the same interest rate.

AgathaSquirrel

If we stay with the same provider, can I move the larger part of the mortgage to a different rate and leave the smaller part to go to base rate until we have the funds to clear it?

kingstreet

AgathaSquirrel said:

If we stay with the same provider, can I move the larger part of the mortgage to a different rate and leave the smaller part to go to base rate until we have the funds to clear it?

Usually, yes. Establish your lender's process just to be on the safe side.