Mortgage with subaccounts - fixed rate tactics
Mortgage with subaccounts - fixed rate tactics
Author
Discussion

essayer

Original Poster:

10,410 posts

224 months

Friday 2nd November 2018
quotequote all
After a move a few years ago we have a mortgage with two sub-accounts split about 50/50

- one on a 5 year fix until Jan 23
- one on a 2 yr fix due to end Jan 19, which can now move to another fixed product

The sub-accounts mean I can't remortgage without paying an ERC on one part, and that annoys me. The LTV is about 50% so the rates are reasonable but I'm not sure whether to:

- keep kicking the can down the road, take a 2.44% fix on 5 yrs and forget about it
- do a 2 yr fix now (2.14%), another 2 yr fix after that, and when that ends I will have both sub-accounts with the same end dates, and the ability to move mortgage provider

I guess interest rates are forecast to stay low, Brexit could go either way.. realistically in 2 yrs I don't feel they'll move that much..

WWPHD ?

kiethton

14,648 posts

210 months

Friday 2nd November 2018
quotequote all
I’d kick the can to align the dates as you suggest unless you can find a competitive 4 year fix (May be possible?)

Sarnie

8,372 posts

239 months

Sunday 4th November 2018
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The downside of porting that the lender will never tell you about.........you are then tied into that lender and at the mercy of whatever transfer rates they offer you......or you have to spend a number of months or years with one account on the SVR until it catches up with the other account end date......