2 mortgage products on 1 property

kinster_2

I've got an existing mortgage and am moving home. As I am tied into my existing mortgage, they said I can take out another product for the increased amount.

Is this common?

Regards

payless

yes- its still 1 mortgage, just split products terms

worth just checking that level of early repayment charges ( have to call them that now !) and current rate does not make it better to pay charges and take a new total deal. Also watch out for uneven penalty periods if "topping up" with new deal, this may restrict/ cause more fees when trying to get a new deal later

kinster_2

I'm currently with A&L and my mortgage runs out on March 2005. I'm considering taking out the A&L 2 year discount (4.44%?) or fixed (4.95%?) on the additional sum. Are these good deals?

When my currently deals runs out (and my additional one continues for the 2 years), am I able to change the original mortgage product when that has ended (March 2005)?

payless

rates are competitive in the current market - BUT can't say iof they are the best for you or even if suitable .

New deal in 3/05 depends on what A&L policy is then - why not ask them now! -

problem I see is if fees are being paid each time , are you paying fees each time part of the mortgage is redone ( so double the fees) plus as uneven redemption dates ( sorry need to call this period taht early repayment charge applies) means you are effectively making option of moving to a new lender in future less attrractive.

You could consider topping up with a product with no early repayment charge , and then do it all in 3/05!
Although no guarantee of what rates will be around then - fixed might be higher.