Remortgage amount less when we switch?

Magnifyme

We have remortgaged as our current deals ends in a few months, does anyone know what happens if the loan amount required is reduced when it switches over to the new lender?

What happens? Will the new lender just lend us what the balance is from old lender, even if it’s less than the agreed amount or is it a more complicated process?

We did this through L&C and our case manager isn’t very responsive.

Thanks in advance,

Thrugelmir

You apply for the amount you wish to borrow from the new lender. All you need to ensure is that the solicitor in total has sufficient funds to redeem the old mortgage. The source i.e. savings or borrowings isn't relevant.

Magnifyme

Thanks Thrugelmir for the reply, do you know what happens if there is surplus funds on completion I.e the loan amount transferred over to new lender is less than what we agreed ,will that reduce the amount to be borrowed or will the excess be sent back to us? Thanks

kingstreet

Solicitor will send it to you.