Making an extra payment on a mortgage after term ends before moving mortgage to another lender?

coffee_king

Hi Guys
Can anyone advise how this will work?
My current mortgage deal is up on 31st July 2019.
I will be moving to another lender as my current lender (Halifax) rates are just awful.

Before moving to another lender though I want to make one extra large payment to bring it down somewhat but I have already maxed out my 10% overpayment allowed for the year.

So (I assume) it would be a case of the fixed rate I'm on now will then change onto whatever my current lender has me marked down for on their system to move onto. I could then pay my lump sum on 1st August 2019 to them, then have the mortgage set up to move onto the new lender the day after, 2 days after/3 days after?

Any thoughts on how all this will work and any foreseen problems?
I hope this makes sense.

Thanks in advance.

dcfc67

You will move onto Halifax's SVR (standard variable rate).

Yes you need to port your mortgage as soon as possible.
You could pay of a large lump sum on the 1st of August fee free as it would reduce the debt you are moving to the new lender.


Just be aware that mortgage payments are usually much higher for the first payment when you port as you will be paying from lets say 3rd August until the 31st then for September so you will be paying almost 2 months upfront


When i moved mine i moved at the very end of the month and only paid an extra 2 days interest

[Deleted User]

Apply to the new lender for whatever you want your new mortgage to be.
The conveynacer will highlight that you are short of redeeming your mortgage by thousands of pounds and will ask you to pay them the difference in time for the switchover date

I just did one of these. Current mortgage £90k, wanted to make £30k overpayment. Applied to new lender for £60k
Solicitor requests redemption figure from old lender, spots a £30k shortfall and client sends the £30k to the solicitor so the old lender can be paid off in full from new mortgage+clients overpayment


edit: Best get cracking if you want to get all done in time for a new lender at end of July

kingstreet

dcfc67 wrote: »

Yes you need to port your mortgage as soon as possible

Really?

Is the OP moving house and transferring their existing rate to a new mortgage with their existing lender?

No.

What JMA said. Don't make an overpayment to the existing mortgage. Make it to solicitor as part of redemption process.