Remortgage if outstanding loan is below 40k

jainraghav74 · 20 June 2019 at 9:30PM

Not valid for my current situation, but post is to increase my knowledge

What happens when at the time of mortgage, the loan to be borrowed is £40k or less?

What planning should be done for such scenario? For example, should the term be fixed for a much longer period when the loan amount was above £40k?

Any other thoughts, comments, guidance please..

MovingForwards · 20 June 2019 at 9:59PM

Generally has to be £25k + so you will be ok.

Thrugelmir · 20 June 2019 at 10:22PM

Remaining with your existing lender will probably be the most appropriate course of action. Remortgaging to another lender may cost too much to gain any benefit. Your existing lender will still offer products than other the SVR.

getmore4less · 21 June 2019 at 7:02AM

Size of loan is just one factor in making the choice and plays a small part of the process.

Primary thing it determines is fee or no fee.
(most likely no fee)

Max payment you want to make tends to be the primary driver as that determines minimum term.

Rates available might mean you can save at higher rates.

By now borrower should have migrated to one of the lenders with good retention deal record.
(not Halifax)

There are 2 main strategies for a mortgage near end of life.

Take advantage of the lowest rate to bring the capital down quicker.
Typically 2y fix.

Go longer fix and forget.

Remortgage if outstanding loan is below 40k

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