Combining Two Mortgages

pollyanna24 · 15 November 2018 at 3:35PM

I currently have two mortgages on the one property. The second mortgage was to buy my brother out.

When applying for the second mortgage, I asked for it to end at the same time as the first, but they refused and so it ends about a year or two before the first mortgage.

The first one is a tracker mortgage (taken out before 2009 when rules changes about payment holidays etc).

The second one is fixed until 2021.

When the time comes (i.e. the fix is up), can I easily just combine the two mortgages with the same company or will I have to go through a whole process of underwriting and so the easier option would be just to refix the second mortgage?

AnotherJoe · 15 November 2018 at 5:13PM

I would just refix as you go rather than worry too much about trying to get it neat.

TomMawdsley · 15 November 2018 at 5:21PM

Most lenders won't let you combine the accounts of the 2 sub-mortgages i'm afraid. The only way to truly get them into one mortgage would be to remortgage to another lender. If your lender doesn't take the Direct Debits separately for each account, then i guess it's just having different deal renewal dates that is causing issues? Other than the extra admin required it's not a huge deal having them done this way, and it may be more hassle than it's worth to try and neaten them up!

pollyanna24 · 19 November 2018 at 3:01PM

Thanks everyone. For some reason, when I took out the second mortgage, the mortgage advisor thought that I would have no choice, but to combine the two of them at the time, but I fought them on that.

So, I can keep them separate, but fix them both for the same rate? Never thought of doing that.

One of them doesn't have a deal renewal date as it's just tracks the base rate plus 2%.

kingstreet · 19 November 2018 at 5:48PM

It's one mortgage, two sub-accounts.

The mortgage being the first legal charge over the property.

Pedantic, but accurate.

stueyhants · 19 November 2018 at 8:34PM

When I remortgaged with HSBC and wanted to borrow more they created a second mortgage as that was the only way they could manage it in their system. I only paid one fee and they both have the same end date and when it comes to renew it will only be one fee. Unless I move lender I’m going to keep having these two accounts. Not a big issue just feels slightly odd.

However if I was having to pay two lots of fees every time I renewed that would be a deal breaker as the costs these days are a rip off.

Combining Two Mortgages

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free