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Remortgage Question

  • 14-05-2022 2:38pm
    Registered Users Posts: 248 ✭✭ netopia

    If I owe my current lender say €100,000 and have 12 years left on my mortgage and I remortgage does that mean I will have to pay my current lender €100K less the next 12 years interest (approx €7.5K)?


  • Moderators Posts: 12,155 ✭✭✭✭ Black_Knight

    You pay the old lender (current provider) exactly what's owed on the day it's paid off.

    You've borrowed 100k. Over the next 12 years that'll cost you 7.5k. if you change mortgage right now the new mortgage provider needs to be paid 100k.

  • Registered Users Posts: 248 ✭✭ netopia

    Still confused, I obviously know I will have to pay the new provider whatever the mortgage value is + interest over the lifetime of that mortgage but what I am asking about it what needs to be borrowed to cover a loan of €100K due over 12 years.

    I am asking as if I use my current lenders overpayment calculator to pay a "lumpsum" of €99,000 they state that I would save €7,800 on my mortgage. That means €100K-€7,800K owed to my current bank if i had the money to pay them today.

    Just need to know for budgeting.

  • Registered Users Posts: 1,836 ✭✭✭ tscul32

    You currently owe €100k but if you continue with the loan, over the 12 years you'll pay €100k plus the interest. When they say you'll save €7800 they mean that you won't have that interest to pay (that you would be paying over 12 years). It means that you wouldn't have to pay the interest, only the €100k. But the €100k will need to be paid to the current lender to cover the loan.