Northern Rock - "borrowing back" overpayments

*jobags*

We have a NR together mortgage - fixed at 5.89% until 1/12/08. We intend remortgaging in early 2009

We have recently been overpaying my mortgage and I am really chuffed about the snowball effect of my overpayments and how they are growing each month as my interest payment goes down

We are planning to build andextension - hopefully starting later in the summer once we have Planning Permission (going to Planning Committee on 21/7)

In the meantime we have £40K sat in our joint current account and £19,000 in another instant access saving account - this is to pay for the building work etc

I want to put this £40K into the mortgage for a few months - just to really get the benefit of the interest reduction for a few months, I am a higher rate tax payer so I understand that it would have to be earning around 8% to be better off in a savings account.

I was going to transfer the money across this weekend but then I saw something on a recent letter from NR saying that my current overpayments ( and therefore I assume any further overpayments) can be borrowed back but this could be subject to a new agreement.

I phoned NR on Friday and asked them about taking overpayments out of the mortgage, I was told that I just needed to phone in when I needed it and ask them to return any amount of the overpayment (in £500 chunks) and it would be transferred back into my account where my monthly direct debit comes from within 3 days.

I am concerned that we could put this £40K on our mortgage and then possibly not be able to get at it when the builders submit their invoices?

Our circumstancs have changed since we originally took out the mortgage (had twins and husbands income has gone down) so if they do a financial assessment then we may not come out as well as before and they may refuse to return the overpayments :eek:

Has anyone got any experience of getting overpayments back from NR and can they advise if it was any problem or needed any further paperwork/checks etc

(If this post is on the wrong board and may be more appropriate on the mortgages board please do feel free to move it)

Any advice or experience welcome

Thanks

Jo

evab_2

HI, I would contact Northern Rock tbh as I also noticed that any borrow back would be subject to a new agreement but don't know if this would mean a new financial assessment.

If you were in any way unsure and know that you would need the money in the future then I wouldn't risk it personally. Maybe others with more knowledge might suggest differently?

Best wishes