Overpayments before remortgage

reehsetin

We bought our first home a few years ago and the 5 year fixed rate will expire in August so we're planning on remortgaging then, and potentially raising the mortgage amount to raise funds for a home extension. We have enough money in savings to make an overpayment to the mortgage now and save on interest until august. Could it affect us when we remortgage? Is it silly to reduce the mortgage only to ramp it back up again or does it not matter at all?

Yorkie1

Are you likely to be near a LTV banding - and thus access a better % on remortgage?

DonM

Depending on your LTV determined by the bank they may not allow you to take the money back in a years time. It probably won't apply but it's just a point to consider.

You also need to consider if there are any penalties for overpaying that could negate the benefit of the interest being saved.