Amount to borrow when remortgaging

abunchofletters

Hi guys,

I am remortgaging at the moment and looking at the 3.29% 5-year fixed deal with Nationwide. It has a £99 booking fee, but no product fee and I believe free conveyancing.

I have currently been overpaying by £250 per month, which I am comfortable with so when I remortgage I will increase the monthly amount to include this and reduce the terms from 22 to 12 years.

All sounds good to me but I do have a question about the amount to borrow. My account currently says I owe £94,690.04 with the next payment (and overpayment) coming out of my account on the 1st of the month.

I want to borrow as little as possible really but don't know how it works when transferring between mortgage providers. Should I wait until the next payment date and then use that new balance as my borrow amount or just get on with it with last month's balance?

Jimbo1976

Why don't you borrow £95,000. The amount you owe will vary each day, increasing up until the date of your monthly payment and then falling after the payment hits.

You can pay any surplus back by paying £500pm rather than £250.

HappyMJ

My personal opinion....don't reduce the term...take out a mortgage over the longest period possible and overpay whatever you wish and it'll still be repaid in 12 years. If in the unlikely event you were to lose your job with a 25 year mortgage you should have enough overpayments accumulated to have a 6 month payment holiday but you won't have any if you have set the term to 12 years.

kingstreet

Me too.

Longer term and overpay more, upto the £500 per month maximum.

Apply for the balance of your account now and adjust it downwards, if needed, when the solicitor obtains the redemption figure. Otherwise, simply use the surplus to make your first overpayment, or two.

dmarks

Thanks for bringing this up. I am about to remortgage and was going to reduce my term but this has made me think again! I may keep to the same term and just overpay. Kingstreet mentioned a 3.09% 5 year fixed rate mortgage but I can't find any information on it so not sure. THanks for helping me out though! :beer:

abunchofletters

Thanks a lot everybody. I'll take your advice when sorting it out tomorrow!