I have my mortgage with Nationwide. I took it out in 2000 and have ported it to two other properties since then. Over the years I have taken further borrowing a few times, taking advantage of the increase in my property's value in order to finance other purchases like a car etc..

These days, still with Nationwide, I have 4 separate mortgage accounts -- the original one, plus the others for further borrowing. Every few years I ask if they can be consolidated into one in order to simplify the payments, but they tell me that's illegal in the UK unless I pay them all off and change provider.

The reason it's awkward is mainly having to do with multiple payments. For example I recently asked them to change the account that the payments were taken from, but they only changed one of the payments, so the remaining ones were from the old account.

Can anyone explain if this is truly the case, and if so why? Wouldn't it be simpler for the mortgage provider as well as me if it was one account?


  • Further borrowing is sort of like a HELOC in the US, I gather - not a refinance, but just a bit extra that's sort of tacked on at the end? While a remortgage/refinance would be an entirely new loan encompassing all of the debts on the property. Perhaps the UK's very different rules on mortgages mean you can't remortgage with the same lender? – Joe Oct 14 '15 at 14:22
  • Yes, not a complete refinance but a bit extra. In my case it was a few years ago and I took some of the increase in property value out as cash in order to buy a car. I understand that if I change providers, i.e. pay off the old loans and take out new loans with someone else, then that would be one solution. It just seems strange that I can't do that with my same lender and so I'm constantly dealing with 4 different balances, payment amounts and account debits, which is a bit of a pain and can lead to confusion. – Jeremy Jones Oct 14 '15 at 14:30
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    It may indeed be time to consider shopping for another lender... – keshlam Oct 14 '15 at 15:04

It is possible to consolidate mortgages with Nationwide, in some circumstances. Quote from their website:

It is possible to consolidate different mortgages and other debts such as personal loans and credit cards. However it does depend on your individual circumstances, including the exact type of loans you want to consolidate and whether you are still in a special deal period

I, personally, would be amazed if you couldn't get them all in one mortgage without changing provider. But... I wouldn't be at all surprised if they forced you to have this one mortgage as a new mortgage, rather than adding balances to an existing one. My reasoning is as follows:

  • I doubt the UK government has written financial rules for consolidating mortgages
  • The only way to therefore go down to one mortgage is to pay off your existing mortgages
  • The only way Nationwide can lend you money to pay off your existing mortgages is by going through the affordability requirements set down by UK government. This takes Nationwide time and effort. They would like to be reimbursed for this time and effort with their mortgage arrangement fees.

Coming at it from a different angle: whatever there was that required your further borrowing to be in new mortgages, rather than added to your existing mortgage, will also preclude your multiple mortgages being added to one of your existing mortgages.

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