split mortgage over two lenders

Gavdeer

Registered User
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2
Hi,

I have 2 mortgage accounts with BOI on my property:

1 is variable 3.5% (best fixed rate currently is 2.9%)
2 is tracker 1.85% (created as part of tracker redress recently)

Variable/Tracker = 75%/25%
LTV is approx 33%

Can I move the variable portion to another lender eg AVANT, so the mortgage would be split over two lenders?
I haven’t engaged new lenders yet, but when talking with BOI about potentially switching they could not offer any information on moving just variable portion.

Thanks
 
No.

No lender will accept a secondary charge on your property as security.
Thanks RedOnion

Going by info on some pinned posts here looks like I would be saving 1.55% pa on the variable if moved to Avant fixed at 1.95%, so 1550 pa per 100k.
Tracker portion will increase by 0.1% so small hit there.
Have 15+ yrs left on current mortgage, any solicitor costs etc would be recouped in a year
Seems like a no brainer to move or am I missing something?
 
No, you're not missing anything. The tracker isn't a particularly fantastic rate, and only makes up 25% of the balance, giving you an effective rate of 3.03% (2.6% if you fixed the variable piece).

You'd be better off switching for a better rate on the entire, but you lose the 'guaranteed' tracker rate on a quarter of your mortgage.
 
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