Remortgaging - is this standard?

[LookingForFreeDoughnuts]

I've secured a new mortgage deal via my broker, all fine (well, as fine as one can be when ending a 1.89% fix deal, sob).

In the application, the figure for my new deal is about 5k more than the actual settlement figure of the amount I will owe when the mortgage changes hands, as it were.

Is that standard procedure? It would be helpful to have a small amount of excess, since the first payment for the new mortgage is double the rest of the payments, so I would just funnel that back into the loan, basically. I'm trying to budget for the next few months to ensure I can cover this higher first month's payment myself anyway, which will be fine, but I was interested if this has happened with anyone else.

Has there been. 5k arrangement fee?

No. In fact there is a £500 cashback offer after the first month with them.

Did you check the product transfer rates available with your existing lender?

I mention this as many don't realise this can be a better and (far easier) option than using a broker and going through a whole remortgage.

Ask your broker. You seem to think you will be given this £5k, I doubt that.

Yes, I've gone through the process to check rates, etc. This product meets my circumstances best.

I'll check with my broker, I was just wondering if anyone else had a similar experience. This is the first time I've needed to remortgage.

If you can... pay any fees upfront so you are not paying the fee at new interest rate over the term of your remortgage

As far as I remember you effectively get applied for a slightly bigger mortgage just to be on the safe side. As long as it is still in the LTV and affordable. The actual amount borrowed will usually be lower and will be calculated on the day.
If you asked for the exact amount and then completion was slightly delayed or an unexpected fee came up, you'd potentially have to reapply unless you can find the cash and potentially lose your deal.
So don't worry too much, you don't have to take more than you need.
It is a good time to take out extra borrowing or make an overpayment though.

Thanks, that's makes sense.

In any case, it's less excess than I thought so I'll just funnel it back into the mortgage anyway. 😊