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Remortgaging - date of switch
beefturnmail
Posts: 938 Forumite
Hi - I will soon be remortgaging for the first time, and I had a couple of questions from which I can't seem to find an answer in the guides etc.
1) An ERC applies on my current mortgage up to 30 September, when the fixed rate ends and reverts to the SVR, so ideally I would want the switch to occur on the 1 October - When applying to remortgage, can you usually specify a date on which the switch takes place? If not how do I at least 'time it' so that I definitely won't pay the ERC?
2) Along the same lines when making the mortgage application would I need to specify the loan amount as the balance on the date the switch takes place - which will be less than the balance when you make the application? The reason I ask is that by the end of September I will have slightly under 30% equity (assuming no change in the property value since I bought 2 years ago), and I'm thinking of making an overpayment to my existing mortgage and applying for a mortgage with a max LTV of 70%
Any help much appreciated.
1) An ERC applies on my current mortgage up to 30 September, when the fixed rate ends and reverts to the SVR, so ideally I would want the switch to occur on the 1 October - When applying to remortgage, can you usually specify a date on which the switch takes place? If not how do I at least 'time it' so that I definitely won't pay the ERC?
2) Along the same lines when making the mortgage application would I need to specify the loan amount as the balance on the date the switch takes place - which will be less than the balance when you make the application? The reason I ask is that by the end of September I will have slightly under 30% equity (assuming no change in the property value since I bought 2 years ago), and I'm thinking of making an overpayment to my existing mortgage and applying for a mortgage with a max LTV of 70%
Any help much appreciated.
0
Comments
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You tell the solicitor handling the transaction that there's an ERP and that completion cannot take place before 1 October 2012. He will obtain a redemption figure for this date.
Apply for the amount you believe will be needed to repay the mortgage and any discharge fees and accrued interest on the target completion date.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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