My Mortgage Fixed ending soon, can I switch with current balance minus a lump sum amount?

sujsuj

My 20Y mortgage fixed rate term ending in September I recently received email saying this mortgage can be switched  from July (which I promptly ignored!)

But I would like to make a lump sum payment  to reduce  mortgage balance before I switch to a new rate. This payment I want to do is on the top of overpayment allowed if I switch to a fixed rate. Currently I don't have any overpayment allowance.

In this case will I be able to switch to a new mortgage rate now with an amount say current mortgage balance minus100k..? If thats not allowed whats the best option for me now..? Thanks

kingstreet

Normally you have to wait for your current product to end, then make your overpayment, then start a new product.

See what options your lender has.

If remortgaging, you could hand the overpayment to the acting conveyancer and have them complete the remortgage at the lower mortgage level you apply for.

sujsuj

Thanks.
I am keen to continue with my current mortgage provide as it will take away some formalities. But the same time my LTV (Loan to Value of House) is below 25% that could get me better deals elsewhere I think..? 

Ideally I am looking is to make that lump sum payment get balance down to more manageable level then get a new deal from current provider. Though they emailed me I cam switch 3 months early I suppose that switching can be done for full balance not balance minus lump sum..? I contacted provider and waiting for their response.

When I searched for new deals (today BOI rate is 1.75%) I am surprised to be tracker mortgages at @1.48% (from Progressive BS via brokers). I know tracker is not the wise choice now as BoE rate expected to go up again soon. But the question I have is how this rate will change next time BoE change rate..? NowBoE rate is 1.75% this broker rate is 1.48% when BoE changes rate to say 2% what might be this lender rate..? it should be 1.48 + .25% or lender can increase  to what ever they want..? Thanks

K_S

sujsuj said:

Thanks.
I am keen to continue with my current mortgage provide as it will take away some formalities. But the same time my LTV (Loan to Value of House) is below 25% that could get me better deals elsewhere I think..? 

Ideally I am looking is to make that lump sum payment get balance down to more manageable level then get a new deal from current provider. Though they emailed me I cam switch 3 months early I suppose that switching can be done for full balance not balance minus lump sum..? I contacted provider and waiting for their response.

When I searched for new deals (today BOI rate is 1.75%) I am surprised to be tracker mortgages at @1.48% (from Progressive BS via brokers). I know tracker is not the wise choice now as BoE rate expected to go up again soon. But the question I have is how this rate will change next time BoE change rate..? NowBoE rate is 1.75% this broker rate is 1.48% when BoE changes rate to say 2% what might be this lender rate..? it should be 1.48 + .25% or lender can increase  to what ever they want..? Thanks

@sujsuj With respect to the parts in bold above -

- Once you go below 60% LTV, there's rarely any further savings to be had due to a low LTV

- Progressive only lends in Northern Ireland

- The 1.48% is not a tracker product, it's a discount product. Trackers will always rise and fall with the BoE rate. Discount products will have an x% discount off the lenders SVR which may or may not move in line with the BoE rate.