Lump sum overpayment before switching mortgages?

t1redmonkey

So I'm looking to switch my current fixed term mortgage over to a different fixed term mortgage, since I can get a much cheaper rate elsewhere.

However I'm also looking to potentially overpay by something like £15k this year. My limit with the current provider is around half that, and I think it'll be similar with the new provider.

This might be a stupid question, but is it possible for me to overpay with my existing provider up to the annual limit, switch mortgage, and then overpay with the new one up to the annual limit with them too? I'm guessing it is, just want to make sure that I wouldn't be doing anything wrong by doing this.

goodwithsaving

Why not put the cash in when you remortgage and take on a smaller mortgage?

juniordoc

Yeah just add the extra money in at the point you remortgage

t1redmonkey

Thought it might be a stupid question. Haven't remortgaged before. I'm guessing then when I go through the remortgage process they will ask me if I want to pay in anything before it starts and I just do it that way then?

Thrugelmir

Just let your solicitor know what you intend doing and ensure that they have the funds at the appropriate time. The amount you remortgage for plus the cash you inject will be used to settle your old mortgage balance.

AnotherJoe

t1redmonkey wrote: »

Thought it might be a stupid question. Haven't remortgaged before. I'm guessing then when I go through the remortgage process they will ask me if I want to pay in anything before it starts and I just do it that way then?

Not really, you tell them what size mortage you want and the money gets sorted out at the point you remortage. That will include allowance for your £15k which you'll send to the solicitor just beforehand.

Your way would be (for example ) telling them you want a £100k mortage and then mentioning you'd immediately like to pay off £15k. What you do is ask for an £85k mortgage at the outset.