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    • osaddict
    • By osaddict 10th Jul 17, 2:16 PM
    • 280Posts
    • 47Thanks
    osaddict
    Lump sum payment when remortgaging
    • #1
    • 10th Jul 17, 2:16 PM
    Lump sum payment when remortgaging 10th Jul 17 at 2:16 PM
    Guys,

    I guess linked to my previous question, however, if I have a lump sum available (say £20k), how would I go about paying this towards the mortgages 'between mortgages' so to speak? - It's the first time I've remortgaged so I don't really get this bit.

    And, if this 20k was basically doing nothing - would I be best to do this, or put it into an offset savings account? - If I said I was happy to not have access to it...

    Just thinking if this could be a good idea...

    Thanks.
Page 1
    • Boredatwrork
    • By Boredatwrork 10th Jul 17, 3:57 PM
    • 152 Posts
    • 168 Thanks
    Boredatwrork
    • #2
    • 10th Jul 17, 3:57 PM
    • #2
    • 10th Jul 17, 3:57 PM
    When you go to remotrtgage a deal, ask for the starting date to start a week after your current deal ends, you will go onto the SVR for a week, make the paintment then, and then go onto the new deal, this will also not affect your overpayment limit that will start with the new deal.

    In the mean time if the money is sat there ensure you have overpaid to the max now (without hitting any early repayment charges), just call your lender they can advvise you how much you can still pay etc.

    Obviously if you have a saving accounts with higher interest rates in the mean time, put it in there.
    • osaddict
    • By osaddict 10th Jul 17, 5:00 PM
    • 280 Posts
    • 47 Thanks
    osaddict
    • #3
    • 10th Jul 17, 5:00 PM
    • #3
    • 10th Jul 17, 5:00 PM
    I see. Thanks. So jumping from one fix seamlessly to another is not the way if I have a bit I could pay off now. Cheers!
    • Boredatwrork
    • By Boredatwrork 10th Jul 17, 5:05 PM
    • 152 Posts
    • 168 Thanks
    Boredatwrork
    • #4
    • 10th Jul 17, 5:05 PM
    • #4
    • 10th Jul 17, 5:05 PM
    Im in the same boat, I have paid my max and have money tied up in a savings account, my fix is up next May 3rd, I will arrange my new fix for a week later, and put the money in that week, you could make these dates closer, but I dont want any mishaps. Once im on the new fix im free to pay up to the overpayment limit again.

    The downside is the one week of the higher svr, but its fairly minimal. I have spoken to my lender about doing this, its fine they say, no cloack and dagger work needed, I just explained it to them.
    • osaddict
    • By osaddict 10th Jul 17, 5:11 PM
    • 280 Posts
    • 47 Thanks
    osaddict
    • #5
    • 10th Jul 17, 5:11 PM
    • #5
    • 10th Jul 17, 5:11 PM
    I'm now tossing up the benefits of doing this now, vs instantly overpaying with lump sum into an offset..
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