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Mortgage Transfer/Payment Break
shaz77_2
Posts: 1,881 Forumite
Hi,
I have only eight years left on a particular mortgage of mine that has been with the same bank since inception. I have a long and proven track record of payments and I'm now in the process of transferring it to a new bank that will offer much more favourable rates equating to £70 less each month to pay along with no setup charges.
I was speaking to my potential new lender and I did voice some concerns regarding my financial position, things have been a little tight as of late due to some unforeseen difficulties. It's being proposed that with my January mortgage payments made (20th) that with the transfer now in process that my next payment will not be to March 20th at the new reduced rate. This would be great as it would give some much needed breathing space and allow me to properly sort out my finances. Is there anything to be aware of with such an offer?
I have only eight years left on a particular mortgage of mine that has been with the same bank since inception. I have a long and proven track record of payments and I'm now in the process of transferring it to a new bank that will offer much more favourable rates equating to £70 less each month to pay along with no setup charges.
I was speaking to my potential new lender and I did voice some concerns regarding my financial position, things have been a little tight as of late due to some unforeseen difficulties. It's being proposed that with my January mortgage payments made (20th) that with the transfer now in process that my next payment will not be to March 20th at the new reduced rate. This would be great as it would give some much needed breathing space and allow me to properly sort out my finances. Is there anything to be aware of with such an offer?
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Comments
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Check with lender if first payment will be the normal monthly amount plus interest from the time the remortgage is processed (ie funds advanced date) to first payment date. If this is the case, you could well end up paying nearly twice your normal monthly payment on that first occasion.0
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I assume this is based on your new lender collecting payments in arrears, not in advance?
It would have to be a clearing bank, such as HSBC, NatWest/RBS then?
Building societies and former building societies collect in advance.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
The setup is that my repayments with the current bank were £527 per month coming out on the 20th of each month. Now January is paid my next payment is on 20th of March which will be £455.0
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Sounds okay, I would love a month mortgage break.0
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