How would this work, what can I do..

Dazza

Hey all,

We moved home in July 2006 from a smaller property.

Our original deal on the smaller house was at 4.9%. It expires in March 2008.
When we moved to the new house obviously we increased our mortgage, we took out a 10 year fixed with the Nationwide @ 5.15.


As I mentioned are 'smaller' component deal of our mortgage is due to expire in March, the Nationwide have offered us a 5 year fixed at 5.63%, but i've noticed others talking about a First Direct @ 4.99.

My question is can I have one part of my mortgage with Nationwide (i.e. my 10 year fixed) and the other part on this First direct. Or do I need my entire mortgage with one company.

Hope this makes sense

Thanks for any help

silvercar

You need it all with one company. Do the figures and work out if it is cheaper to take the hit on the ERCs on the larger amount and move the lot now or sort out a deal on the smaller amount with Nationwide.

hangover

You have to have your entire mortgage with one company, I'm afraid. So unless you want to pay some (presumably) hefty redemption fees, you're stuck with choosing from the deals that Nationwide are offering (or reverting to their base rate).

I am currently in a similar position with Nationwide, although my two deals only overlapped by about 6 months. So in my case I have reverted to the base rate on the earlier deal until the later one expires (at the end of February) and then I will be remortgaging to the 4.99% deal with First Direct.

Dazza

Yeah, looks like i'm stuck with the Nationwide then. I have 8.5 years left on the fixed deal with substantial fees if I leave :mad:

chappers

I would keep an eye on this because if interest rates do make a significant drop then a move may become more viable in the future.

andrewbrydon

In the current climate 5.15% fixed isnt bad for the next 8 years at least you know where you are
of course if you ever want to move again then the loan is "portable" so can be taken to the new property,subject to a few checks.