2 mortgages, same property, different banks?

[iceman]

I have 4 years left of 20-year endowment mortgage. Amount of capital is 44k, current value of endowment policy is 33k. Current BOI interest rate is 4.64%.
Also I have 12 years left of home-improvement annuity mortgage. Amount remaining is 37k. Current BOI interest rate is 4.64%.

I am currently about to enter negotiations with BOI to see if they will match NIB LTV mortgage for annuity mortgage, which offers ECB + 0.5% or 3.75%.
(Probably not worthwhile doing anything with endowment mortgage)

In the event of the negotiations being unsuccessful, does anyone know how if it is possible to have 2 mortgages on the same property with 2 different lending banks, or how banks would view this?

 

[ClubMan]

In the event of the negotiations being unsuccessful, does anyone know how if it is possible to have 2 mortgages on the same property with 2 different lending banks, or how banks would view this?

I very much doubt it. An existing lender will probably not allow you to mortgage the property in part with another lender. It's all too messy from their point of view and may not be legal anyway. Why not just remortgage with the cheapest lender and then make a separate decisions about what to do with the endowment policy (e.g. encash, keep on or sell)?

 

[iceman]

Thanks clubman. I guess that the strategy is to negotiate and then if unsuccessful move all. The key question for the decision on the endowment policy would be the amount of the "paid-up" value. In any case, the proceeds of the endowment policy could be be used to reduce the mortgage amount.

BTW... I think the AAM web-postings are great. Keep up the good work.

 

[Butter]

With only 4 years left it may be worth continuing to pay your endowment policy as there is usually a terminal bonus attached at the end of the period. This might make a substantial difference to your final payout.

 

[iceman]

About 5 years ago, the premium on the endowment policy was about 90 euro p.m. It escalated dramatically to 219 currently to meet the shortfall due to poor endowment performance.
How do I find out about about current/future endowment performance which will influence my decision about whether to increase, decrease or freeze premiums into the endowment policy vs. putting the money into an SSIA-follow-on type savings scheme?