First time remortgage

Mikk30

Hey guys,

I'm getting a bit nervous about my up coming re-mortgage.

I bought a 2 bed 2 years ago for 310k - which i think is now around 330k in value after looking at other 2 beds in the area.

My current deal ends in 2 months (1.44%) and i think I can get another 2 year fixed (1.36%) with Yorkshire BS.

Called my current provider and they say i have 214k left on a 20y 9m period.

From what I understand I need to remortgage for the day AFTER this current deal expires, correct? How far in advance can I do this? They spoke about my new provider's solicitor asking for a form of some sort that shows how long i have left etc and if they do that i get charged or something? Or it may be that if i chose a date before it ends I get charged....that makes more sense.As you can tell - not done this before!

My financial position has changed a little - have had bonuses and payrises etc in the time since so i may over pay a little to try find a better deal. Its best to get the best deal "for you" and not just the lowest rate, right? Over 2 years big product fees might be better spend on over paying?

Thanks in advance - sorry for the confused ramble!

foxy-stoat

You can call your lender a month or so before your current deal ends. You can ask for a redemption figure and you may get an admin charge but ask them.

You can overpay at any time or make a payment when you take out the new deal.

No sure why your nervous as it looks like your in a good position.

Mikk30

Thanks for the reply Foxy!

Yes! Redemption figure. Is that an official form that I'll get charged for or just them telling me over the phone what I owe? When I called today the woman on the phone didn't mention a charge (when she told me my amount) But did mention a 1% charge for something, which i'm thinking was if i get my mortgage moved before the end date?

Will work out what i can overpay!

Nervous because I always overthink things, this is all on me and I've not done it before! Thanks for your help!

kingstreet

Estimate the amount outstanding to be repaid.

Apply for the mortgage and get a mortgage offer.

The solicitor handling it will ask you for your earliest completion date. You tell them the day after the ERC ends.

They obtain the redemption statement from your current lender and send you a copy to check it.

You agree it's right and they complete on the nominated date.

Processes evolve over time and this is how the remortgage process has prevented thousands of people paying ERCs unnecessarily.

Mikk30

Thanks Kingstreet!

Time to get talking to people!