Remortgage due-switch both at same time?

kezzygirl

Good morning. Our mortgage deal ends 28th Feb 25 and we currently owe 137,761 at a rate of 1.9%.
Our ported mortgage also ends 31st May 25 and interest currently stands at 2.74% with 68,120 owed.

All along we had planned to bring the two in line, so they are due to renew at the same time. However, I am conscious that rates are a bit higher now and we may benefit from holding off remortgaging the ported mortgage at the same time as the first mortgage as we wouldn't be paying as much interest.  Am I right in thinking that if we bring the two in line, we would be paying say 4.74% on the whole amount as opposed to 4.74% on both of them? 

I hope this makes sense, advice appreciated 

El_Torro

If you are waiting until end of May to get a new deal on a mortgage where the rate ends at the end of Feb doesn't that mean you'll be on the Standard Variable Rate for 3 months? Might not be the end of the world but it's worth bearing in mind that you'll have 3 months of high interest payments.

kezzygirl

El_Torro said:

If you are waiting until end of May to get a new deal on a mortgage where the rate ends at the end of Feb doesn't that mean you'll be on the Standard Variable Rate for 3 months? Might not be the end of the world but it's worth bearing in mind that you'll have 3 months of high interest payments.

There's 2 mortgages, one deal ends Feb and the other may. I can switch deal without penalty in last 4 months of deal. My plan would be to remortgage February one, but hold off on may 

El_Torro

Ah, ok, get you now. The mortgage that you are ending early will probably jump by 1%, maybe more. So you'll have lost out on a favourable rate for 3 months. I don't see much downside other than that, if your goal is to have 1 mortgage instead of 2. 

Hoenir

Any particular reason for wanting to bring them into line? Dropping onto the SVR or paying an ERC is an unneccessary expense. 

kezzygirl

Hoenir said:

Any particular reason for wanting to bring them into line? Dropping onto the SVR or paying an ERC is an unneccessary expense. 

There won't be an erc as I can change without penalty in last 4 months of term. Do you think this is a good idea to bring them in line or hold off and enjoy the lower rate on may for a couple of months? If I did it separately, so they're on 2 different mortgages still we would end up paying over 8% interest wouldn't we?

penners324

On the same property? So they're with the same lender?

kezzygirl

penners324 said:

On the same property? So they're with the same lender?

Yes, we ported to this house and borrowed more, hence 2 mortgages 

Edi81

kezzygirl said:

penners324 said:

On the same property? So they're with the same lender?

Yes, we ported to this house and borrowed more, hence 2 mortgages 

You have ONE mortgage with TWO sub accounts. 

Who is the lender? 

Hoenir

kezzygirl said:

Hoenir said:

Any particular reason for wanting to bring them into line? Dropping onto the SVR or paying an ERC is an unneccessary expense. 

There won't be an erc as I can change without penalty in last 4 months of term. Do you think this is a good idea to bring them in line or hold off and enjoy the lower rate on may for a couple of months? If I did it separately, so they're on 2 different mortgages still we would end up paying over 8% interest wouldn't we?

The two sub accounts are totally seperate loans. You can opt for whatever product you wish. There's no requirement or need to consolidate. 

kezzygirl

Edi81 said:

kezzygirl said:

penners324 said:

On the same property? So they're with the same lender?

Yes, we ported to this house and borrowed more, hence 2 mortgages 

You have ONE mortgage with TWO sub accounts. 

Who is the lender? 

Nationwide