Borrowed some more on my mortgage why does it show as a separate loan?

[user67864]

We remortgaged last year in order to get a better rate and also borrowed an additional £3000 on our mortgage to go towards home improvements. For some reason the bank has us paying this as two separate mortgage payments. We basically pay our mortgage and then £17 a month for the £3000. We did it on our mortgage as the rate is obviously lower than a loan.
However now thinking it through properly that will mean with the years left on our mortgage we will end up paying over £4000 back.
Would it be better to try and pay this off. I also don't understand why it is done as a separate payment. If we planned to borrow more (which we do not) would we end up with 3 separate payments?

I think this is pretty standard. I have a mortgage in 3 parts, the main house bit, an additional £25,000 for home improvements and a further £5000 to buy a car (those were the days!). They are on 2 different rates with slightly different penalties for overpayment. If I want to overpay I just need to let them know which account I want the money to credit, it's not been a problem. You'd have to look at your interest rates/penalties to work out if it would be cost effective to overpay. It's all rolled up into one directdebit payment on my bank statement.

That’s normal as they don’t extend your mortgage you don’t get it on the original deal - be that good or bad - you get it on what they offer now. It’s a small amount you would have been better getting it on a credit card with a long 0% interest period - barclays offer one currently. Look at over paying as much as possible and paying it off when you’re out of the tie in period.

Additional borrowing is always shown as a sub account to original loan I think. I don't have one now but when I did you could specify which sub account you wanted to make any overpayment to so should be easy enough to repay the £3k with taking it the full term of the mortgage.

We did the same last year and it is shown as a separate.loan as it has a different interest rate and end date. I think it is pretty standard.