Can you have 2 different mortgage providers on one property?

Money_Saving_Mandy_2

Hi all

I was wondering if anyone could answer me this question.

I currently have a shared ownership apartment but am looking to buy a house (as with my mortgage, rent and service charge - I can afford a full mortgage on my own house, so think it makes sense).

If I sell my current place I will have a £50k mortgage remaining with Nationwide at 5.18%. This is a fixed rate until Oct 09, so I can port it to a new purchase.

However I will need another £55k mortgage to buy a place, does this have to be with Nationwide too or can I get this from another bank/building society etc????

I ask cus Im unsure if it can be done... but also as my fixed year still has a while to go, Im thinking of a lifetime tracker /variable rate on the 55k (to get low application fee, no early repayment fees etc), so that come Oct 09 I can remortgage for the full amount (hopefully at better fixed rates than the banks are offering now).

Thanks Mandy

wymondham

I think it will need to be with the same provider as they need to have first charge on the property, have a chat with them to see your options...

PBA

All the mainstream lenders will insist on having the first charge on the property. Lenders like Firstplus will take a second charge, but you'll almost certainly get a better rate for extending your loan with Nationwide.

herbiesjp

Speaking to Nationwide about porting and taking out the balance on a new deal should be your first option.

They will be able to tell you straight away if you will be able to port the mortgage - this is importnat, as if you cant, or if they cannot lend you the extra money, then you will have to look for a new lender anyway.

As for lifetime tracker with low fees and no penalties - well, I think you and millions of other swould like more of these options, but the simple fact is, due to the credit crunch these deals are few and far between