Remortgage question

IdrisJazz

Bit of background...

Nearly two years ago, as we had paid off our mortgage on our modest house and accumulated sufficient deposit we bought a second house so that we could relocate quickly. In order to make the mortgage affordable we took out a 26 year mortgage that takes me up to age 69, with the plan of selling the first house ASAP and using the proceeds to pay off a good chunk of the new mortgage when it was time to remortgage, and reduce the term significantly.

This has all gone to plan, and we have £100k in premium bonds waiting for our 2 year fix to end at the end of the year.

My question is: when we remortgage should we pay the £100k to the old lender or the new one?

• We want to borrow the smallest amount necessary (should be around £125k)
• We don't want to be on a SV Rate for any time at all if possible
• The 26 year mortgage has repayment penalties if we overpay more than 10% of the outstanding balance but hopefully that only applies during the fixed rate period
  

Thanks!

Cscott139

Hi, just apply for £100k less on your new mortgage and make the payment via the solicitor. You definitely don't want to wait until your new mortgage starts unless you are applying for a deal that doesn't limit overpayments.

amnblog

As above, pretty much summed up

IdrisJazz

Cscott139 said:

Hi, just apply for £100k less on your new mortgage and make the payment via the solicitor. You definitely don't want to wait until your new mortgage starts unless you are applying for a deal that doesn't limit overpayments.

Thanks.  Do I need a solicitor to remortgage? I hadn't considered that

dimbo61

Yes your new lender will want a solicitor involved in order to secure the mortgage debt on your property as a first charge and make sure the existing mortgage has been repaid.
Have you paid 10 % extra off this year ?
You can secure a new deal with a new lender or your existing lender usually about 90 days before your existing mortgage deal runs out.
Just clearly explain that you wish to pay a lump sum off the debt.

getmore4less

Which lender?

You may not even need to remortgage if you picked one of the decent ones.

Once the ERC period ends  pay off £100k and do a product transfer for the new ballance.

IdrisJazz

getmore4less said:

Which lender?

You may not even need to remortgage if you picked one of the decent ones.

Once the ERC period ends  pay off £100k and do a product transfer for the new ballance.

Thanks.

I'm with Halifax. The mortgage was through a broker as I was a contractor at the time and I was buying a second property so it was quite specialist.

I'm now employed, again and looking to remortgage with LTV below 40% so should be able to cherry pick the best rate available. Halifax aren't currently showing up the best buy table but maybe they will come up with something worth considering.

I'll get in touch with them in september and let them know what I'm planning.

london21

IdrisJazz said:

Cscott139 said:

Hi, just apply for £100k less on your new mortgage and make the payment via the solicitor. You definitely don't want to wait until your new mortgage starts unless you are applying for a deal that doesn't limit overpayments.

Thanks.  Do I need a solicitor to remortgage? I hadn't considered that

Some remortgage lenders offer free legal.