Natwest - remortgaging while in a fixed term

[Deleted User]

Before I contact my bank does anyone have any experience of this please? I entered into a 22 yr mortgage in Nov 2017 with a 5 year fixed term on a leasehold flat. The leaseholders now have the opportunity to purchase the freehold but at around 14k for my share I'd have to borrow. Can I remortgage while in a fixed term if it's to increase the value of my property or would I still be subject to the fixed term penalties? Thanks

kingstreet

A remortgage is a new mortgage from a new lender to replace the old one.

Your options are;-

a further advance from your existing lender
a secured loan from a third party leaving your current mortgage intact
a remortgage to a new lender to repay the existing mortgage and raise the extra funds.

The first two options will mean not having to pay a penalty to exit the current mortgage product, the third would result in such a payment.

MortgageMamma

You would be better looking at a further advance with your lender or a secured loan. A secured loan is using another lender who will put a second charge on the property and they can cost more. A further advance from your lender would be cheaper.

The bank may ask you what the leaseholders plans are when they purchase the freehold and if they will set up a new leasehold company - they may want to know what terms the new leasehold company will be issuing and how communal areas will be maintained etc.

If you don't know this information already or its not been decided, tell the bank you are wanting the money for some other purpose, saves it getting all complicated.