Miminum New Mortgage

gaz310

Good Evening
could anybody answer my question what is the smallest amount i could borrow as a new mortgage as i have had an offer on our home but am coming up a bit short on the property we want
could or would i be able to borrow 15 to 20 K when buying another property say a 10 or 15 years mortgage
or would they want me to borrow more
house we are looking at is 235k

many thanks

MortgageMamma

You should be fine to be able to do that, most lenders prefer 25k but there are lenders who will lend as little as 5k

MarkyMarkD

I wouldn't necessarily restrict yourself to loans for people who want over £25k or whatever.

If you have the income, you could get a mortgage for the £25k or £50k or whatever minimum on a product which allows limit-free overpayment, and then repay the amount you don't need the day after completion.

It could save you a lot of money.

Also consider not just the up-front rate but the ease of switching further down the line - or choose a product with a lifetime rate.

MortgageMamma

Ive just done that on a NR porting case, ported it at a higher amount to avoid the erc's and then got the client to pay off the surplus post completion to reduce balance on one of their unlimited overpayment deals, client was worried about the additional borrowing but once I explained it could be paid back the day after completion and it would save her 8k she was happy enough, and of course I got a proc fee on the full amount too.

silvercar

MortgageMamma wrote: »

..... and of course I got a proc fee on the full amount too.

that explains why someone suggested to me taking £100k more than I needed and putting the 100k straight into the offset!

MarkyMarkD

Now, you can argue (Silvercar) that it is a good idea to do this as it gives you an additional borrowing facility of £100k that you wouldn't otherwise have. But you could also see it as a cynical way of getting an additional procuration fee.

I think there's a lot of mileage in asking the adviser for a cut of that additional procuration fee, if they propose this sort of deal, as it's no extra work for them.