Remortgage - Quick Question

DeafCassette

Hi guys,

Mortgage is ending in January, so am looking to remortgage. I have some cash that I can put onto the mortgage, but am uncertain as to when / if / how i'll be able to do this.

I can only overpay 10% per year, which I have maxed for this year.

I would like to add a further 25k. Will the mortgage provider accept this "deposit" much in the same way as if it were a new mortgage..

Thanks in advance for any help.

:money:

latecomer

It should do - we did exactly this last time we remortgaged. you need to make sure your figure are correct

YHM

You would need to overpay by the 25k when your fixed rate expires, subject to your lenders reversionary rate allowing unlimited overpayments.

They should be able to handle an overpayment and a remortgage request at the same-time, if you are planning on moving elsewhere.

kingstreet

Are you (a) remortgaging, that means a new mortgage from a new lender to repay the old one, or are you (b) asking your current lender for a customer retention product?

In the event of (a) you should pay the funds to be used to reduce the mortgage to the solicitor handling the transaction and apply for the lower amount from the new lender.

If (b) as YHM suggested, wait until the ERC has ended, make the overpayment, then set up your new product on the lower outstanding balance.