Source
r/UKPersonalFinance•
willium563

Combining 2 Mortgages from 2 Properties into 1 Property 1 Mortgage

Me and my partner both bought properties a couple of years before knowing each other and are looking into moving into one and selling the other. The early repayment charge on both is a lot of money, we are both with the same mortgage provider and wondering if there is any way to port or merge these together into a joint mortgage or will we just have to suck it up and pay the ERC?

Subletting is not an option as both are shared ownership.

Posted Oct 26, 2022, 3:51 PM UTC

77
botterway23•

If they're the same provider you may be able to port both mortgages to the new property. You're unlikely to be able to merge them to a single mortgage, unless the two have the exact same term, rate etc (ie, same products, taken at the same time). But perhaps having two mortgages on the same property may be okay.

The answer, as always though, is that you should talk to a broker.

3
willium563OP-•

Funnily enough they are the same product, bought at the same time in the same building as was new build flats completed at the same time and through the same broker.

Will contact a broker.

5
SuperciliousBubbles16•

Okay I'm going to need you to tell me that you met moving in on the same day and fell in love across the moving boxes because this is the setup for an adorable Hallmark movie-style meet cute 😍

5
botterway23•

Nice! Might work then. Good luck (and update here, if you don't mind - would be interested to know if you pull it off!).

2
[deleted]•

[removed]

1
Character-Dark-65152•

I don’t think you would be able to port - too complicated with you both owning each property individually. It might be possible, but you would need to speak to your mortgage provider.

In terms of when to sell, you would need to weigh up the cost of the ERC now vs the ongoing fixed costs of the property if you kept it until the end of the mortgage term. I.e. is the total amount you would spend on fixed costs (council tax, service charge, mortgage interest etc) more or less than the cost of the ERC today? There will be a tipping point as you get closer to the end of the mortgage term.

If the fixed costs are less than the ERC today, hold onto the property until the end of the term and try to sell shortly after the ERC falls away.

1
[deleted]•

[deleted]

1
Kingsworth2•

You’ll have to pay the ERC. Also, I doubt it’ll be possible. You’d need enough equity in one of them to in effect ‘buy out’ the other one.

0