Renewing with smaller mortgage

gmboy

I have 1 year left on my current fix, but have the offer of having early repayment charges waived if I move before the end of the fix. As my property value will very likely be less than in 2007, if I change my mortgage provider I'd like to apply for a smaller mortgage than my current balance (making up the difference with savings). How do I go about this? Do I just apply for a smaller amount, stating that the current balance is what I want to take out, rather than what it is? (Otherwise the online tool says it's unable to lend, as the current balance exceeds the LTV available, as measured against what I imagine the current valuation would be.)

kingstreet

gmboy wrote: »

Do I just apply for a smaller amount

Yes. Exactly that. For example, if your current mortgage is for £100k and you want to pay it down by £10k during the remortgage process, you simply apply for £90k and pay your £10k to the solicitor handling the transaction just before completion.