Remortgage application query

madaminx

Hi

My current deal ends at end of this month. I started the remortgage application process approx over a month ago. The outstanding balance of my mortgage as it stood at the beginning of the remortgage process was approx £59k however I have made payments since the beginning of this process.

I'm not sure how to word this question but I will do my best. when I filled the applic form nearly 2 months ago the balance was £59k however I have since made payments since filling this form. Once the process is completed and the new lender releases moneys to the old lender what happens to the difference in balance taking into account any payments made during the interim time of application process.

Should I receive these funds? Or is the new lender informed of slightly amended outstanding balance accounting for any payments made since start of application process?

Hope my query makes sense.

Thanks

M

kingstreet

At the outset, you should obtain a redemption figure from your current lender to establish what you need to borrow from your new one. The balance and the redemption figure may not be the same due to the addition of discharge fees and/ or early repayment penalties.

The solicitor handling the conveyancing will obtain a figure to ensure they have enough money to repay the old mortgage on completion day. There is almost always a few £ left over and this will be sent on to you for you to do as you see fit.

If it's a reasonable sum, you might want to think about paying it straight back off the mortgage, if the terms permit.

madaminx

Many thanks Kingstreet.