Remortgaging

HomeOwner2015

If I remortgage with another provider how does it work?

When I apply to the new provider do I just apply for the exact amount of mortgage outstanding with my current provider? Then new provider just pays old provider off?

Also there is a lending fee due to my current provider when the mortgage is paid off. Do I pay that £250 seperately? Or do I apply for £250 more mortgage than is currently outstanding to cover it?

Thanks

kingstreet

A remortgage means you move to a new lender and your current mortgage is repaid.

You ask your current lender for a customer retention product. This is not a remortgage and you should not look at your current lender's remortgage products as they do not apply to you.

If you do remortgage, look at your latest mortgage statement for guidance on the mortgage amount, then think about reducing it when your solicitor has a redemption figure.

If you borrow too much, you can always use it to make a voluntary overpayment within any annual penalty-free overpayment allowance.