switching mortgage while still in minimum term

chamelion

Hi folks,

I'm trying to do some pre-analysis in case of interest rate hikes. I'm on a tracker mortgage at the moment. The product I'm on has no early repayment charges and a £65 redemption charge.

If I end up switching to another supplier - factoring in all costs of course, it sounds like I'd only be liable for the £65 if I close the existing mortgage. What if I remortgage, and instead of them closing off my existing mortgage they repay all but £100. Wouldn't this essentially mean I still have the mortgage open, so don't have to pay the £65 - and can pay some nominal couple of quid per month to keep up with payments?

Probably a crazy idea, but just checking all routes!

[Deleted User]

A lender won't be keen on someone else having a charge over the mortgage.

Thrugelmir

New lender won't accept being second charge holder.

chamelion

Deleted_User wrote: »

A lender won't be keen on someone else having a charge over the mortgage.

ah. good point... deeds would be with supplier #1, who wouldn't hand it off without £65 fee and zeroing out the balance.

Got it. at least there's no early repayment charge, but i'll factor in the £65.

Thanks!