leew Posts: 726 Forumite
10 November 2017 at 9:43PM in
Any help with this.
I am trying to fill out the questionnaire but it's a bit over my head some bits 
The main ones are these.
1.Will this mortgage be paid off at completion of the new mortgage?
Do I tick this or not?
2. Surplus payments
No idea on this, haven't a clue but they want £30 from me for this 
I asked for 930000 which they agreed and by the time my current Mortgage is up it will stand at around 91000.
Any ideas? like I say I am clueless here first time Re-Mortgaging, I just expected to deal with the Lender Tesco not a Law Firm too
Thanks.
Malc00 Posts: 29 Forumite
10 November 2017 at 10:36PM
Try not to worry yourself too much. It is a very common for people not to realise they need a solicitor to remortgage.
It is very easy to overcomplicate so don't beat yourself up over it either.Are you paying off the mortgage with the existing lender? yes
The surplus payments would be dealing with any left over funds. For example you may have £2k extra borrowing from the mortgage company. They usually charge a fee to send on the remaining 2k on to the customer.
I believe you can always call LMS for help if needed too.
leew Posts: 726 Forumite
10 November 2017 at 10:47PM
Malc00 wrote: »
Try not to worry yourself too much. It is a very common for people not to realise they need a solicitor to remortgage.
It is very easy to overcomplicate so don't beat yourself up over it either.Are you paying off the mortgage with the existing lender? yes
The surplus payments would be dealing with any left over funds. For example you may have £2k extra borrowing from the mortgage company. They usually charge a fee to send on the remaining 2k on to the customer.
I believe you can always call LMS for help if needed too.
Thanks, will try not to.
Yes, paying off with Natwest at the moment but once that's up it will be Tesco.
I guess I should have said I need to borrow £91000 as that is when the new Mortgage kicks in, live and learn.
Can I repay the 2k by paying extra a month on the new Mortgage If you understand?
It is a little bit daunting
Malc00 Posts: 29 Forumite
10 November 2017 at 11:04PM
It depends on what your new Tesco mortgage allows. You should be able to check on the KFI. Unfortunately I'm not familiar with Tesco mortgage products so couldn't say. It might be worth speaking with the broker you applied with to check if you can reduce your loan amount down.
leew Posts: 726 Forumite
10 November 2017 at 11:12PM
Malc00 wrote: »
It depends on what your new Tesco mortgage allows. You should be able to check on the KFI. Unfortunately I'm not familiar with Tesco mortgage products so couldn't say. It might be worth speaking with the broker you applied with to check if you can reduce your loan amount down.
Thanks. I know you can overpay by 20% so I'd have thought I could.
I will check the KFI for confirmation.
Farmerbob Posts: 234 Forumite
10 November 2017 at 11:34PM
if You don’t expect to need the entire 20% overpayment allowance in the first year then once it completes you can call them up and pay it over the phone. Alternatively you can ring them to reduce the loan amount on the OIP it’s easier at this stage before you get to formal offer.
Edi81 Posts: 1,444 Forumite
10 November 2017 at 11:35PM
once The legal work has been done Tesco will ask for a final settlement figure from Natwest for a date in the future (approx one week away).
Tesco will send that amount to Natwest and the remaining funds will be sent to you via the solicitor. You are then free to do what would want with the cash. If you wish to make a repayment to your mortgage wait until you get the letter from Tesco with account number and bank details and make your overpayment.
It is pretty much impossible to apply for a mortgage and get exactly the correct amount to settle the existing one. Don’t worry about it.
leew Posts: 726 Forumite
11 November 2017 at 12:17AM
Thanks all, probably overthinking it all
I guess it isn't a big deal really.
Please could someone clarify this option on the questionnaire and which one should I have picked, I chose Yes.
Will this mortgage be paid off at completion of the new mortgage?
Yes [x]
No [ ] This may delay completion and will incur an additional charge
Finally, will I have to pay a Dealing with a transfer of equity (excl. disbursem*nts) fee? listed at £245?
Sorry for all the questions
Farmerbob Posts: 234 Forumite
11 November 2017 at 9:49AM
The first questions is still a “yes” as you’re paying off your old mortgage.
The transfer or equity question, I take it your current mortgage/deed are in the name of you and your wife and the new Mortgage will be the same if so no you won’t be liable for a Transfer of equity fee. The fee is for adding or removing someone from the Mortgage
FungalCow Posts: 26 Forumite
11 November 2017 at 3:42PM
Edi81 wrote: »
once The legal work has been done Tesco will ask for a final settlement figure from Natwest for a date in the future (approx one week away).
Tesco will send that amount to Natwest and the remaining funds will be sent to you via the solicitor. You are then free to do what would want with the cash. If you wish to make a repayment to your mortgage wait until you get the letter from Tesco with account number and bank details and make your overpayment.
It is pretty much impossible to apply for a mortgage and get exactly the correct amount to settle the existing one. Don’t worry about it.
There are some lenders that only allow a direct transfer of the remaining debt and will do a redemption figure a few days before completion. HSBC are one. If you are remortgaging to them, they only allow the like for like debt to transfer over (regardless of the figure on KFI or Offer). Capital Raising is different obviously but they will still only advance the exact amount to pay off the old mortgage and give the money requested.
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leew Posts: 726 Forumite
11 November 2017 at 3:51PM
FungalCow wrote: »
There are some lenders that only allow a direct transfer of the remaining debt and will do a redemption figure a few days before completion. HSBC are one. If you are remortgaging to them, they only allow the like for like debt to transfer over (regardless of the figure on KFI or Offer). Capital Raising is different obviously but they will still only advance the exact amount to pay off the old mortgage and give the money requested.
Hi FungalCow,
That makes sense, I hope Tesco do that but its probably likely they won't as thier Law firm mentions they transfer the surplus for a £30 fee.
No biggie really though.
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