Remortgaging ties?

Nikki4

I moved house in 2006 and as such ported my original mortgage with me taking out another 'loan' to cover the additional cost of the new property. Thus although I only pay one monthly payment my mortgage is split into two loans. My original mortgage was a 5 year fixed rate which is due to end its tie in period in 2010. The new mortgage was a 2 year fixed rate which is due to end in August of this year. I need therefore to rearrange the rate on the new mortgage and was hoping to do this on another 2 year fixed rate so that both loans will end their tie in periods about the same time, however after speaking to my lender the current deal they are offering is 6.59%. Due to the mortgage being split into two loans am I stuck with this lender until 2010 or is it possible to shop around? Any advice welcome!!!!

herbiesjp

You can shop around, but I think the 5 year fixed rate deal will be far more competitive than any deal you can get at the moment (which I'm guessing makes up the bigger chunk of your mortgage amount)

So I doubt it will be beneficial for you to pay a penalty on this 5 year fixed rarte good deal to get a better deal on a two year fixed rate, which would be on a smaller amount of mortgage.

Can you give the interest rates and amounts for each of the two loans?

Also what would be the penalty amount if you left the 5 year fixed rate?

If you meant could you look at another lender for only the second part of the mortgage - the answer strictly speaking is yes, but you would not get a second charge mortgage (which is what you would need) down the high street, and the rates would be higher than 6.59%

Nikki4

Thanks for your reply - The 5 year fixed rate is at 6.14% and is for £89,000 and the 2 year fixed rate was at 5.34% and is for £73,000 over 17years. The penalty on the 5yr is ridiculous - around £3,000!!! All with Abbey.