Difficulty re-mortgaging due to loan size.

luckyfool

Toughluck wrote: »

N Rock. Unlimited overpayments on their fully flexible mortgages. As mentioned the loan size could be an issue so I'd go back to the lenders websites people have already mentioned.

Northern Rock would normally be ideal for those circumstances, but they cap loan sizes at £1 million just now.

luckyfool

Boo-Rumble wrote: »

Could you suggest lenders that I might approach?

I recommend speaking to a broker about your priorities and how you use your current mortgage. How much you might be offsetting, whether you need access to the money again or whether you can commit it to the mortgage through overpayments, etc.

It would be worthwhile to see whether offset is really going to work for you and worth paying the premium on the rate, or whether a more straightforward deal with limited overpayment flexibility would be sufficient.

i.e. C&G gets you a rate under 6%, with 10% capital repayments penalty free during the incentive period. A difference of over 0.5% on the interest rate is costing you £7,500 every year to go with the offset equivalent you have found. You would need to be getting a significant benefit from the offset facility to make up for that.

Ok . . . if you have money that you could offset (but not overpay on the standard mortgage) you benefit from saving on that amount of interest on your mortgage . . . and that saving is significant as you are presumably a higher rate tax payer. Its worth doing some sums though, as I consider myself a bit of a skeptic when it comes to offsets that you are not just paying for some gimmicky features that do not benefit you enough to justify the higher rate.