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Remortgage Question

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Hi,

When remortgaging, am i transferring the whole amount I owe including my previous lenders APRC - as an example (80,000 borrowed + 70,000 interest) or just what I borrowed (80,000) onto the new lenders APRC? Keeping in mind what i've already paid off, of course.

I am obviously new to all this and just looking to get my head around it all, as I have with previous topics.

Comments

  • amnblog
    amnblog Posts: 12,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You are replacing the outstanding balance plus any fees or penalties for settlement.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You transfer the owing mortgage debt, i.e. the capital balance. Interest is charged as and when it falls due. As a result any repayments you make are a combination of capital and interest. Only the capital element reduces the debt owed. Over time more of your monthly repayment goes towards reducing the capital balance. This is why in the early years of repaying a mortgage progress does seen slow.
  • So minus any exit fees, in this example, I am only transferring the 80k to the new lender? Which is the capital debt?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Correct. There'll be a mortgage exit fee to pay to the old lender in addition to the capital balance. Interest will be calculated to the date the mortgage is redeemed.
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