Mortgage in two parts - options when fixed rate ends on one part?

regency_man

I have a mortgage in two parts:

Part 1 is £150k at a rate of 1.19% fixed until April 2024 (this was ported from my old property)

Part 2 is £400k at a rate of 2.19% fixed until August 2027

I've been holding off on getting a new deal on Part 1 hoping the BoE would annouce a rate drop last month but here we are. The best deals my current provider is offering are crap compared to the best deal on the general market (by about a whole percent).

Question is, can I actually move one part of my mortgage to another provider? Moving the whole mortgage is not an option as getting anywhere close to 2.1% on the larger part right now is impossible.  So am I effectively locked-in because of this?

kingstreet

No. You can't. Best best would be a three year fix so you could remortgage in 2027.

regency_man

Thanks I assumed this was the case, ideally I need to make the parts co-terminus but the best I can do at the moment is renew Part 1 for 3 years until April 2027 then presumabily I'd have to pay the SVR from April until August then I'd be able to move the whole mortgage to a new provider, if needed, withouth any ERCs.  Pitfall of multi-part mortgages I guess. 

Funnily enough I'm experiencing a similar lock-in problem with Admiral now on our multi-car renewal, we can get a cheaper quote on the car that is due for renewal elsewhere, but if I pull one car out of the policy the other car loses the multi-car discount and it ends up more expensive in the short term. Beware the bundle.

kingstreet

Most lenders have products with a fixed end date, rather than X years from completion. It's likely a three year fixed arranged now will have a 31/07/24, or possibly 31/08/24, expiry date. Check what your lender offers.

Typically, new mortgage products are influenced by swap rates which often already take into account possible short-term base rate movements so any rate changes which may come in the next few months are likely already reflected in today's mortgage products.