Remortgaging questions

withaspritz

Hi, I'm considering moving my mortgage from Halifax to HSBC

I'm on a fixed rate with one year left from 30 April, so will start the process then as the early repayment charge drops to 2%.

My reckoning is that getting a HSBC rate fixed for 5 years will save me a lot more than the ERC in interest, versus Halifax's rates (even now they are high - but in a years time when I can remortgage for free, I expect them to be even higher).

The questions I have are regarding the process as I have never remortgaged before.

1. The amount I am requesting from HSBC - does that include the ERC or exclude it?

2. If I continue to make payments to Halifax during the conveyancing process, which could be over a month - will the amount HSBC lend reduce, or will there be a surplus equal to my payments to Halifax that will somehow get paid to me?

Thanks in advance!

dimbo61

You can if you have the money pay the 2 percent ERC,s from your savings ?
If you don't have that amount spare you can ask the new lender to give you the mortgage balance outstanding plus the 2 percent ERC.

dimbo61

If you make an extra months mortgage payment or are owed any days interest this will be worked out and repaid to you.
Please consider All the costs of moving lender