Mortgage query - fixed or variable

[brexitschmexit]

Our mortgage deal is due for renewal in September. We've always had a fixed rate deal, the most recent being for 2 years. We are thinking of putting the house on the market this year, so should we avoid a fixed term deal on the basis that we would incur an early repayment charge?

The variable rate is much higher so we'd be paying a lot more per month until we moved. But even a 1.5% early repayment charge (the lowest it could be) would be almost £5k based on the current mortgage outstanding.....

If we go for a fixed rate deal, can you usually transfer the mortgage to your new property and thus avoid the early repayment charge? I've never been in this situation before so am a bit naive/clueless!

If we go for a fixed rate deal, can you usually transfer the mortgage to your new property and thus avoid the early repayment charge?

Yes. And if the new property is more expensive then you'll end up with a second mortgage sub-account to cover the excess. I was surprised how easy it was when we did it a couple of years ago.

I would stick with a fixed one at the moment. Rates are unlikely to drop and can only go up.

If you're looking to sell this year, find a fee free tracker. Yes, many providers allow you to port a fixed rate, but they might not lend on the house you want to buy, or they might undervalue it. Best to have the flexibility to change lender when moving home.

Thanks for the tips all, much appreciated!