Mortgage question

[Spamfrit]

Hi, currently going through a remortgage. How do mortgage offers work? I’ve recently been landed with a bit of unexpected money.
If a bank gives me an offer of say 4% for approx £150k and I now pay off 20k before it goes through does it affect the offer?

You could apply for a new mortgage now that your circumstances have changed. But you may have to pay a fee depending on the terms of your initial mortgage. Speak to your mortgage broker/advisor.

Chances are you'll be able to get a cheaper rate now you're borrowing less.

If you requested 100k you get 100k and any difference from your current mortgage comes back to you as cash. That’s what we were told as we asked the same question with over payments.

I would look at the current rates and if you can get it cheaper as they have come down quickly. If so put in another application (don’t do this lightly as it will start to affect your credit rating over time if you do too many)

If you are on the best rate, check your over payments, it’s normally 10% of your total loan so on 100k it’s 10k a year so once the mortgage deal comes through just pay the full amount possible without ERC

Thankyou for your replies. We secured 3.92% for 5 years and can’t get near that now. Will proceed and pay off 10% allowed.

We would issue an amended offer for the lower amount and you could keep the same rate. You would then need to pay the money off the current mortgage before it completes