Renegotiating mortgage - can I put down another deposit, and will I be 'revetted'?

indextwo

Hey guys

I think the last time I posted on here was asking advice about getting a mortgage and then how to reduce its term as quickly as possible. Everyone was really helpful and I ended up putting down 25% on a mortgage from YBS and getting a 3.4% fixed for three years.

Having read that first paragraph, you might be forgiven for thinking that I actually know what I'm talking about. However, I'm unsure as to whether the plan I have in mind is possible:

I was able to save my 25% deposit in around 3 years. With 2.5 years left on my fixed-term contract, it's feasible that I'll be able to save another 25% again. With that in mind, once the mortgage reaches the end of its 3-year term and we come to renegotiate/move elsewhere, can I put down another 25% on the house 'in-between' mortgage deals?

Our current mortgage has an overpayment cap of around £5k per year, and when we're looking to get a new deal, I intend to go for an offset mortgage (assuming they're still available in 2014).

The other thing I was wondering about is: because I'm self-employed, YBS had to send all of my financial details and our application off to head office to be 'manually approved'. This took almost three months and the entire affair was like chewing on a brick. When it comes time to renegotiate our mortgage, will I have to go through the same 'vetting' process again? Because that would not be awesome.

Thanks for your help!

dwsjarcmcd

If you stay with YBS you will not be vetted again if you move to one of their deals at the end of your fixed rate.

Regarding the additional 25% you save between now and then, yes this can be re-paid to YBS at the end of your fixed term (not before or you may incur early repayment charges) and either move lender or take a new deal with the Yorkshire based on your new LTV

indextwo

That's great, that's exactly the information I was after. I was just looking at YBS's website and they currently have a Fixed Offset deal, but it seems to suggest it may only be available to new borrowers or people moving their mortgage in from elsewhere.

So, if I'm able to save my money by the end of my current term with YBS and then getting moving my mortage to, say, Halifax (for example), would I pay the 25% to YBS or to Halifax?

Not that it makes much difference, I suppose...

dwsjarcmcd

You would pay back what you owe at the end of the fixed rate term to YBS. You would then take out a lesser mortgage with the Halifax.