How do subaccounts work when remortgaging?

rtidrtid

Hi All. I have 2 mortgage accounts with Barclays. One is the main mortgage, ends July 2025, rate of 1.5%. We took out extra borrowing for renovations, that ends Sept 2026 rate of 1.9%.

When I look to remortgage in July 2025 and if I was to goto another lender, is the sub account automatically considered part of that mortgage so effectively an ERC would be payable?

I think if I keep it with barclays I can just do a rate switch for the main mortgage, but i'm trying to plan ahead and possible pay off the sub mortgage if it will open up more rates for me?

BarelySentientAI

You will find lenders reluctant to be the second charge on a property, so you would need to move both parts.

If one of those parts is still in a fix, there will be an ERC.

If you stayed with the same lender, you can just take a new deal for the expiring part.

Hoenir

Seperate loans under one mortgage charge. For mainstream lenders it's a question of moving all or nothing. 

amnblog

Yes, you would need to clear the whole mortgage to involve a new Lender so you would pay early redemption charge on the sub account. You would also lose 14 months on the 1.9% rate which would be further cost.