Remortgage - how do they work out figure?

pollyanna24

I'm planning on remortgage with the same company I am with now (Nationwide) when my fixed is up next April.

But I just wondered how it worked. I have put a few overpayments on since I took the mortgage, so I just wondered how they worked out what my new payments will be.

I should imagine I will be ringing to refix it three months before my current fix ends, so there will be more payments being put on to the mortgage (it's repayment by the way).

So, will I just pay my last payment on my current fix on 1st April 2008, and then pay nothing on 1st May 2008, but just get a letter informing me of the completion amount (i.e. I assume the amount I owe on 30th April once that month's interest has been put on) and then have a payment coming out in the middle of May (trying hard to remember what it was like when I bought the house and wondering if it will be like that again).

pollyanna24

Sorry, one more question.

Will I have to find extra money from somewhere because the first payment will be larger than the other repayments, or does it not work like this as I will just be carrying the mortgage on?

KTF

The amount to be remortgaged will be the original amount you borrowed less the monthly payments/overpayments that you have made.

If you have Nationwide online banking you can see the outstanding mortgage balance.

As you are planning to stay with the same lender I imagine the payments will continue to be made on the same date. The amount you pay will be different though due to the interest rate/term/amount outstanding changing.

Dont forget that it may be worth going to see a broker to look around the market to see if there is a better deal than the Nationwide one that you are considering.