Can I remortgage and pay off a lump sum

london_lasher

Afternoon all,

Quick question maybe someone can help me with.

I currently have £190k mortgage with Halifax, fixed rate deal that ends in Feb. I am looking to remortgage for obvious reasons but have a lot of savings that i would like to pay off part of the mortgage with.

So what i want to do is switch the mortgage to another lender but at same time pay off a substantial chunk (130k or so) of it.

I currently can pay off 10% with Halifax and assume wherever i move to will have a similar feature - but will i get hit for early repayment charges for the large lump sum payment on this from one or the other lender - or can i simply take out a 60k mortgage with new lender?

Hope this makes sense,

Anyone any ideas?

#Many thanks,

chris.

Cara79

Hi there,

This is basically what I want to do in August (albeit not with such a large amount of savings!!!) :rotfl:

Anyway, basically, as your deal runs out next month, then you will be out of your fixed rate period. Therefore you shouldnt' have any early redemption penalties.

What you need to do (if you see a broker make them aware of this), you basically want to remortgage for £60k and pay the £130k off after your current deal's fixed rate ends but before you take out the new mortgage. Effectively, I think, you will pay the £130k to Halifax, and then the remortgage will take place with X lender.

Hope that makes sense. Should be pretty straightforward.

cupid_s

I am in a similar situation (only I have nowhere near 130k to pay off unfortunately). When my mortgage becomes unfixed in august I will be allowed to overpay whatever I want without penalty as long as I don't pay it all off. So my mortgage in september will only stand at around 40k. Then when I remortgage I will simply transfer the 40k to the new lender.

I would have thought that as long as your deal is not fixed you could make whatever overpayments you want so should be fine. But it might not be that simple if you have restrictions after the fixed term still