Paying off mortgage/remortgaging in future

Ivana_Tinkle

I'd be grateful for a bit of advice. Our mortgage reverts to the SVR in a couple of months. We have enough savings to pay it off at that point, and this would make sense in the short term, since our savings are earning next to no interest.

However, we intend to remortgage the house at some point in the next 5 years to raise capital for a building project (long story!). Would it make any difference to the ease or cost of the remortgage if we were to leave a small amount outstanding on the current mortgage? (ie so that it's a true remortgage, rather than a new mortgage on a house that's currently mortgage-free.) If so, is there generally a minimum amount we should leave outstanding? (The mortgage is with Santander, if that makes a difference.)

Thrugelmir

Suggest you ascertain whether you can remortgage the property at a good rate of interest for the amount and purpose required before settling the mortgage.