Confirmation about remortgage

tealcr

Greetings everyone,

Looking for a little advice and some confirmation about the remortgaging process.

My current fixed deal with Halifax ends on the 31st of January 2023 and I would have to pay 1% ERC if I were to remortgage now.
However, I have received an offer from Lloyds for a 5 year fix at 3.7% which is valid until the 28th of February 2023.

Does this mean I could potentially sit on this offer for a few months until, say for example, late December/early January and accept the offer then, with the intention of completing the remortgage for the 1st of February 2023. Therefore avoiding ERC and keeping the 3.7%, 5 year fix.

This is how I have read the rules to the best of my understanding but would just like a little confirmation.

I do have a second question relating to amount I have asked to borrow for the remortgage. I used the current mortgage amount for the application, if I were to wait a few months before accepting, this would now be less the original amount I applied for due to making several payments. When I accept the offer, should I contact Lloyds and ask them to reduce the amount borrowed to the new mortgage amount, or will the excess money eventually be sent to me and I could use it to simply make an overpayment?

Any feedback would be greatly appreciated.

Saint84

hi,

my understanding is that yes you have until the expiry to accept the offer

regarding the surplus funds, it will be paid into your account on completion and yes you can overpay (whilst being mindful of the overpayment allowance per year)

I am in same position as you and I asked the same questions

tealcr

Thanks Saint84, appreciate you sharing

waingels

You're best to take out the offer on 01st Feb once finished fixed rate period on first mortgage. ( Avoids early repayment charge).

The new mortgage will get a redemption statement from the current mortgage provider to show the most up to date mortgage size, I don't think the new bank would overpay the existing bank