Ignorant mortgage query...

mixwell

Looking to re-mortgage for total loan of £160k as we are looking for move house.

I want to keep my payments as low as I can for as long as I can so if the worst happens I can afford to keep paying etc. I can find a rate that is costing me around £950 a month, but others seems £50 or so more.

If the terms are the same, i.e. allowing over-payment, freedom to move etc and no fee then is there any benefit in paying more for the mortgage in the period in question?

Surely 24 * 950 = 22800 is better than another lender wanting to charge me 24000?

Is there any benefit at all in paying more if the t&c's are the same?

Obvious question but its confusing me!!

kingstreet

First of all, a remortgage is moving your mortgage from one lender to another while staying in the same property.

If you are moving house, you are taking out a whole new mortgage. You can do this by approaching your existing lender which may allow you to port the rate from your existing mortgage to your new one if you qualify and satisfy its status requirements. Alternatively, the lender may offer you a new product if it is more advantageous for you that the porting option.

You may have to take some of the new mortgage on a new deal even if you do port as you'll only get the existing amount on the old deal. Any extra borrowing will be on a new offer.

Finally, you could shop around all the other lenders to see if there are better deals in the market as a whole.