Remortgaging

dccarm

I have a quick question about remortgaging. I am about to apply for a new mortgage and was wondering how much I should apply for. I basically just want to transfer the same value to a new lender, but I would like to have a bit left over to cover legal costs etc. Do I just apply for a rough estimate over my expected redemption value, or can you adjust the amount you want to borrow further down the line?

Fairdo_2

You could look to Remortgage on a Fees free basis, including Free Legals for straight forward legal work.

You could also check to see what your current lender would offer you.

Why do you want to change your mortgage? Do you want to borrow anything over the outstanding mortgage and possible associated costs?

The best thing to do would also be to ask your current lender to send you a Redemption statement. They would be obliged to do this and it would be an up to date figure on outstanding balance with any redemption costs applied as of the date of your request.

dccarm

After reaching the end of our current discount period we are looking for a better deal. I intend to talk to our current lender (Halifax) but don't expect them to match the mortgage I'm looking at, the First Active base rate mortgage.

I've already requested a redemption statement, but what I was thinking was that the amount owed by the time the remortgage goes through will undoubtedly be different (although I requested a statement as at the end of the month). I'm really just interested in the mechanics of the funds transfer from one lender to another as I have never remortgaged before.

We might take a bit more than is owed to pay for some home improvements. Although that depends on the valuation as I want to keep LTV below 90%.

doodle_bug

dccarm wrote:

I have a quick question about remortgaging. I am about to apply for a new mortgage and was wondering how much I should apply for. I basically just want to transfer the same value to a new lender, but I would like to have a bit left over to cover legal costs etc. Do I just apply for a rough estimate over my expected redemption value, or can you adjust the amount you want to borrow further down the line?

I've just remortgaged with the Nationwide, they have some deals where you don't have to pay any fees and I'm an existing customer so there are no legal fees.

I was however seriously considering the Britannia BS https://www.britannia.co.uk/usdaw their flexible mortgage sounds just the thing that you need. If say you have £50000 to remortgage and the value of your property is £100000 they would pay the £50000 but you'd have a reserve of £75000 giving you £25000 available at anytime at the same rate as the original borrowing, you don't have to use it but it's always there if you need it.

I remortgaged last year with Nationwide and borrowed an extra £20000 to make improvements on my property, I put the money in my Nationwide savings a/c 4% net but was paying 5.99% on the mortgage,(offset would have solved that problem I know) I used the money as and when I needed it but I actually lost money, with the BBS you draw it as and when you need it.

I put the Usdaw on the end because if you are in Usdaw(and who's to say your not) you get a better deal and with the flexible mortgage don't pay any fees apart from dispersments and that is covered because they give you £150 cash back.