Offset mortgage - pay down to £1, then borrow back to full amt again?

ManicMum · 26 September 2011 at 4:34PM

hello

I am trying to work out how to fund my potential new house. If I pay off my offset mortgage so just £1 left, can I then take the whole lot back out again without having to tell the bank why? Even if they find out through solicitor does it matter if we are still within terms of the loan?

I took out a 20 yr mortgage a year ago and already paid nearly half of it off. My hubby wants to go self-employed but this presents issues with regard to obtaining a mortgage and we could really do with more space. I am thinking if he goes self-employed we could have this mortgage paid off in another 12-18 months and could we then just borrow back the rest of the mortgage to fund the bigger house. Am I dreaming?

cheers

Thrugelmir · 26 September 2011 at 5:01PM

Presumably you'll need to sell your existing property and redeem your mortgage in order to move house?

kingstreet · 26 September 2011 at 5:03PM

If you're moving house, you'll need to apply for a whole new mortgage on the new property. They may allow you to port the rate from the old mortgage but you have to satisfy the criteria for the new mortgage first.