Moving large sums of money

[Thingsthatgo]

We have a fairly large mortgage, and when it ends we would like to pay off a large chunk, probably around £120k.
Our mortgage is currently with NatWest.
I am a little confused about how we go about doing this on a practical level.

We have £200k left on our mortgage currently and will plan to move providers for the best deal. So when our mortgage ends we send the £120k to NatWest. Presumably on the actual day the mortgage ends? Or the day after? Also, how do we send it? Can we move that much money? I'm guessing we gather it together in our current account, from all the savings pots, but not too early because it will be vulnerable in our current account. Then do we need to go to the bank to move that much money? Or can we just transfer it?
Sorry, these questions seem daft - I am just unsure of the process!

Depends on your bank. Mine limits online transfers to £25k a day.

Yes, I think mine does. So do we do it in branch? Or do we need a solicitor to move the money?

Go into the branch to enquire what to do

Ask your own bank - there are different types of payment transfer you could authorise. CHAPS / BACS for instance.

You can move as much as you want in branch - might need an appointment, almost certainly will need ID. Expect to be questioned about why.
Edit: and expect to be charged a small amount - £20 iirc.

You will need to go to the branch. I have transferred £600k in the branch. You will need id and there will many questions to check you are not being scammed.

yep to all the above. I work for a high street bank. Depending on what type of account you have and who you bank with, there is also the possibility of doing it via telephone banking-this isn’t available to all account types though. Standard procedure for most people is to do it in your local branch. It’s known as CHAPS/EFT and there is usually a fee for the processing. Give your bank a call and ask them to book you an appt so you can be sure you’ll be seen at the right time on the right day (there’s a cut off time for CHAPS/EFT-payments input after 3.30-4ish will be processed the next working day) Take your ID and any details you have for the account it’s going to. Like springofcontentment said, expect to be questioned on source of funds and what the payment is for. Refusal to answer can and will result in refusal to send the money

I have done this in branch before for a house deposit. It's actually quite nice and reassuring, they double check the bank details for you and everything.

I would have thought with this situation, you would transfer it to your new mortgage provider not your old one though? You want to avoid any early repayment charges

I've done this via telephone banking before

Will you use a broker to find your new mortgage? In which case, I would ask them.

It may be that you can get a better deal on a higher loan, and if you have one where a big overpayment is then allowed it might work best to pay it off in the new mortgage.

Anyway, when my old endowment matured I just transferred the ££ to my current account and then to the mortgage account. My bank allows £50k a day. There was no fuss. My brother was recently the executor of his MIL’s will and paid out a lot more than you are talking about to 3 different people, no visits to branches needed. (But did it £50k per day)

You'll still need a mortgage for the £80k I assume?

In which case you need to go through a solicitor to remortgage and the money can be dealt with through them. Lots of mortgage companies provide the solicitor for a remortgage.

@TheOneWithUnagi yes I will still need a mortgage for £80k, but I don't need a solicitor for that. We are not moving house.

@spriots yes, I wondered about that. I imagine I pay my old provider, at the same time as the the new provider takes over the remaining mortgage. But I shall need to get the timing right!
This situation must be very common?

If remortgaging between different mortgage providers you need a solicitor

@TheOneWithUnagi oh sorry. I apologise, I didn't realise that was the case.
I don't remember using one before.

@TheOneWithUnagi If the new mortgage provider includes the legal fees as part of the mortgage package, will the solicitor be available to me, to assist with paying off some of the mortgage?

The new mortgage company usually provide one for free.

Basically the solicitor will get mortgage funds from your new lender, and then on "completion" day will repay your old mortgage so you can also send your money to the solicitor to send over.

The solicitor also updates the deeds with mortgage charges with the land registry.

Yes you will get a completion statement which shows how much you are owed / owe to settle the old mortgage.

@TheOneWithUnagi great! Thank you for your help