Minimum Mortgage Value £25k?

StephAshcroft

Hello!

My current fixed rate deal is coming to an end at the end of next month.  I am with Natwest, and they have told me that they will not provide a mortgage for less than £25,000 - is this the case with other lenders too please?  I owe £28k, and was hoping to pay off a lump sum before remortgaging which would take me under the £25k, in which case, Natwest won't be able to provide me with a mortgage.

Thanks for helping me through this minefield!
Stephanie

ACG

I dont think every lender has that figure, but a few do.

Brie

What if you take the remortgage for £28k and then pay a lump on that?  I imagine that lots of people pay off a lump at some point particularly when the total is getting low so they can't say "cancel the mortgage" if you drop the outstanding balance from £28k to say £15k.  

Of course the alternative is to go elsewhere if you want to go for the smaller amount.

welly_59

Brie said:

What if you take the remortgage for £28k and then pay a lump on that?  I imagine that lots of people pay off a lump at some point particularly when the total is getting low so they can't say "cancel the mortgage" if you drop the outstanding balance from £28k to say £15k.  

Of course the alternative is to go elsewhere if you want to go for the smaller amount.

OP will be limited to 10% (on average) of outstanding mortgage during the new fixed term without triggering penalty costs

MFWannabe

Wouldn’t you just go on to their variable rate? No need to fix and can make any overpayments you like 

ElwoodBlues

How much are you looking to overpay/reduce the mortgage by? Natwest allow 10% overpayment (that's 10% of the mortgage balance in each year). So if you want to stick with them, remortgage for 25k and then the next day you can make an overpayment of £2500 without penalty.