More mortgage than I require

paultither

We applied for a mortgage recently but have over estimated the amount on purpose in order to finish off our recently renovated kitchen.

Can someone please advise me whether we are likely to recieve this extra £500 or will it disappear into a financial ' black hole'?

Trying_to_be_good

Do you already have the money? If not, you should be able to amend the amount you're borrowing to the lower amount needed - so then you don't need to repay it (or the interest on it).

It won't disappear into a black hole.

ILW

I would suggest £500 on a mortgage (if thats not a typo) is not going to make much difference to anything.

paultither

£500 is correct. The mortgage is approaching £125k so we didn't feel £500 would make too much difference and would help us finish the kitchen without dipping into savings.

What will happen to this money when our previous lenders recieve the money and our new lenders take their signing on fee? Will we get a cheque for the £500?

jackieb

Why didn't you just put in £500 less deposit?

Comyface

paultither wrote: »

£500 is correct. The mortgage is approaching £125k so we didn't feel £500 would make too much difference and would help us finish the kitchen without dipping into savings.

What will happen to this money when our previous lenders recieve the money and our new lenders take their signing on fee? Will we get a cheque for the £500?

It won't disappear into a black hole, it's money you've borrowed, it should come to you.

If I've understood correctly, you've basically remortgaged and added £500 to your new mortgage, compared to what you owe on your old mortgage? If that's the case, the remortgage conveyancer/solicitor will request the money from your new lender to pay off your old lender, have £500 too much so will send it to you.:j