Will I be paying more interest?

kezzygirl

Hi folks. Our mortgage is renewing- 28th Feb and 31st May. The 31st May is extra borrowing we took out 2.5yr ago to buy pur current house. I was hoping to bring them both in line, but as yet we can't renew the second mortgage as it is not within 4 months of expiry and I'm worried it will be too late to renew with nationwide for our first one. 

My question is, will we be charged more interest for obtaining the 2 new fixes? We owe £137,309 on the first one which will be a new fix at 4.39% for five years. The other has £67,744 owing which will also be at 4.39% at a guess. 

Maybe a stupid question, but would it be cheaper to bring them both in line? Will having them separate mean we pay 8.78%interest on the whole amount?

Hoenir

No you won't be charged extra interest by having two seperate loans. If you don't fix the loan that ends on the 28th February until the end of May. You'll pay interest at Nationwide's Standard Mortgage Rate (SMR) which is currently 7.49%. Probably best to fix each loan seperately. As and when the necessity arises. 

lfc321

No - you won’t be paying 8.78%. This was already answered on page 2 of your previous thread: https://forums.moneysavingexpert.com/discussion/6572140/remortgage-due-switch-both-at-same-time/p2

kezzygirl

Thankyou
 Il switch one in Feb and leave the other and enjoy a few months at the lower rate. I am wondering if the bank of England meeting regarding interest rates will cause them to become a bit lower than existing?