Mortgage Finishing but wanting to borrow more later in year

ToyotaNige

Hi All,
Bit of a long Title! In short:-
My endowment paid out short in Feb, I still owe £28,000 due in May. Our intentions are to move later in year when the house is sorted. Earlier in the year Nationwide sent a letter regarding Covid etc offering to extend mortgage until October which sorted me great (it's a legacy mortgage 2% above base). After calling it was declined as I am not in financial stress and to call when the endowment paid out. I therefore called a couple of weeks ago and explained how much short and that I want to move and borrow significantly more but won't know until middle of summer. The reply was - don't worry about it, sure we can sort something. I think I am more worrid than they are!!

My house is about £200,000 and looking in the region of £350,000. How does the system work? I am assuming in May (don't even know date as paperwork states May 2021) I have to remortgage the £28,000, but does the way I achieve that have an impact borrowing more 4 to 6 months later? Last thing I want to do is borrow the money in a way that costs me a lot more later.

Thanks
Nigel

dimbo61

Your current mortgage debt will drop into the SVR but you maybe able to sign up online to a new deal as an existing customer.
However you must be aware of any ERC,s ( early repayment charges) so check out any tracker deals with No ercs
Are you on Interest only ?

ToyotaNige

I am interest only, doesn't the bank 'demand' repayment when due?

K_S

@toyotanige In theory, yes. In practice they are likely to do their best to give you a way out, either by remortgaging to a capital repayment basis, extending the term for a further short fixed period or putting you on another I/o plan for a fixed period so you can sort the move and pay off the outstanding amouny.

If you've been on top of your payments, and told them that you're going to sell later this year, Nationwide aren't going to want to repossess your house for a pending mortgage of 28k.