Switching Lender & Reducing Mortgage

[picorette]

We are intending to switch lender , but also wish to pay off a lump sum on our mortgage to reduce it below 100k.

Should we pay the lump sum first, & then switch ?
Or can it be done at the same time as switching, or would there be complications in doing this ?

Thank you

 

[Protocol]

Note that some lenders may not accept new switcher mortgages under 100k.

I know Avant don't.

 

[skrooge]

Something to consider first is will it be worth your while switching? Mortgage switching involves fixed costs (legal fees and valuations probably cost you a minimum of€1,500 ) . You'll have to save this in interest to make the switch worthwhile. On bigger loans this makes sense. However, the lower your balance the less interest you'll pay and so less benefit from switching. As the loan amount decreases the interest differential will need to be bigger. Whatever your current mortgage is the real calculation needs to be looked at on a net of €100k basis. You might be better off just paying off the lump sum now and sticking with your current provider. Of course cash back offers might make it worthwhile regardless but best to be sure before you start.

 

[Paul F]

We are intending to switch lender , but also wish to pay off a lump sum on our mortgage to reduce it below 100k.

Should we pay the lump sum first, & then switch ?
Or can it be done at the same time as switching, or would there be complications in doing this ?

@picorette Consider posting your mortgage details in the switcher thread (in the format shown in the first post). I'll estimate the savings you would make from switching to different rates with your current lender (or to another lender if you want to go that route).