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Original poster

Selling whilst on fixed term mortgage

14 replies

user1489844432 · 04/01/2020 07:29

Hello

First time seller here. I was wondering how does the process work when I am on fixed mortgage. I have about a year and a bit left of my deal and I am thinking about selling and moving up the ladder. I will be liable for early exit fees if I pay off my mortgage early but if I wait with selling until the deal is finished then for months I will be paying variable rate meaning paying over £400 more each month. What am I missing here? People move all the time so I must be missing something obvious.

OP posts:

madcatladyforever · 04/01/2020 07:32

Not really. I just sold through a 2 year fixed term as I had to move to a different county quickly for work and had to pay almost 2k. Not happy but had no choice.

Pipandmum · 04/01/2020 07:33

No you go on another fixed term once your current deal is over, either with your current lender or someone else.
Check your exit fees it's a sliding scale and on occasion it is worth paying it, if for example you get a very good offer, need to move for other reasons or your circumstances have changed so you may not qualify for a another fixed mortgage etc. Do your research.

NemophilistRebel · 04/01/2020 07:33

You can port your mortgage to avoid fees and if you finish the fixed rate then never pay variable, make sure 3-6 months before your fixed rate is up you talk to an advise and get a better deal

BonnyE · 04/01/2020 07:35

We did this. As long as your lender is happy to port the mortgage to a new property and lend you any additional amount you won't have to pay any fees. Give them a ring

ImpossibleGirl86 · 04/01/2020 07:35

I've never done it so I could be wrong, but don't you just 'port' your mortgage, so you take out a mortgage for the new place with the same provider, that way they don't lose out so presumably waive the fees?

sirmione16 · 04/01/2020 07:36

I don't really understand what you're asking. Your fixed rate mortgage is coming to an end, and you move before it does so you pay off your mortgage, your fees and whatever is left is yours to spend on your new house/deposit/whatever. If you don't move, then you go in to your bank and talk about your mortgage and get a new one in place with order to keep it down. This may be remortgaging, it may not. Depends on your circumstances. But definitely go in and talk to an advisor about what will work out best once it ends.

BelfastNonBlonde · 04/01/2020 07:36

Im not very “in the know” with mortgages! But perhaps you might be able to have the fees waived if you mortgage the new property with the same bank?
I’m sure if someone has done this they will hopefully be along to provide their wisdom..!

ImpossibleGirl86 · 04/01/2020 07:36

Haha clearly I type slowly 😁

NemophilistRebel · 04/01/2020 07:47

I have moved 5 times, I can confirm most lenders will port and allow you to borrow the extra on top

Don’t go into your bank and discuss remortgaging when you come to the end of the fixed rate, the banks will give you a poor deal.

Plenty of independent advisors who will sort you out
It’s no hassle at all

Gotanewname · 04/01/2020 08:26

We ported. I think most lenders do it these days. You usually need to have taken out your new mortgage within 3 or 6 months of the sale and assuming your new mortgage is the same value or more, you won’t be charged.

If you complete on sale on purchase on the same day then you never get charged. We had about a six week window between sale and purchase going through. We were charged 10k but we were reimbursed immediately that our purchase completed.

Gotanewname · 04/01/2020 08:27

Oh yes, as a pp said your mortgage provider will let you increase borrowings too. It’ll be fine

FrangipaniBlue · 04/01/2020 11:05

Some mortgage companies will waive or reduce the fees if you take out your new (and bigger) mortgage with them so it's worth asking

The2Ateam · 04/01/2020 11:58

You have to speak to your exhausting lender to see what they will allow you to do. We’ve just moved whilst half-way through a 5-yr fixed rate. Our lender allowed us to port the product to another funded rate mortgage with them
Only and if it was within 30-days. Because we were borrowing more and not less, there was no charge. We used a broker who found this was the best thing financially for us to do, so we went with it.

sarode · 05/01/2020 22:46

You can try to port your current mortgage but beware, I tried to do this but was told by Santander that I could not borrow any more money because my income was not recognised as I was on a fixed term contract at work. I am a contractor and have been doing agency work for months now and have had a steady and reliable income. Santander refused to hear this and so I am currently stuck in my flat, unable to move, saving the money that Santander refused to lend me. So make sure you check with your bank if they will allow you to port.

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