Cashback Remortgages · Remortgaging
Overpay or Switch? Making the Most of a Remortgage
If you have spare funds, you might overpay your current mortgage or switch to a better deal. The right move depends on your rate, any charges and your goals.
Overpaying
Many lenders allow penalty-free overpayments up to a yearly limit even within a deal. Overpaying reduces the balance and can shorten the term or lower future payments, and can move you into a cheaper loan-to-value band before a remortgage.
Check your terms for the allowance and any charge above it.
Switching
If your rate is high or your deal is ending, switching may save more than overpaying at the current rate. Sometimes doing both — overpay to a lower band, then remortgage — works best.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.