Am I trapped by my mortgage?

[Youngatheart00]

We have a fixed rate mortgage until June 2023. There are penalties for repaying early which would significantly eat in to our equity.

Do lenders ever waive these or, can you move the mortgage to another property which has an equal or greater value?

Covid has made us realise we are really unhappy living where we are and would like to move in the next 12 months but no idea how much we are trapped by this bloody mortgage fixed rate.

You might be able to port your current fixed rate to another property. Worth talking to your lender to see what they would allow

www.moneysavingexpert.com/mortgages/porting-your-mortgage/

We’ve ported our mortgage twice - it’s very likely you can do the same.

We have ported ours, they were absolutely fine about it. You shouldn't be stuck somewhere you're not happy, check with your lender because they'll probably be really helpful.

That’s really helpful, thank you. I’ll speak with them and see what they say (in theory - we haven’t found a property yet but I am obsessed with Rightmove!)

If you need to borrow more do they just put a separate ‘product’ on top of the one you already have?

Basically yes. you port over the amount you have (as long as your property is worth the same or more else may not be able to as LTV will be higher). Then you apply for the additional amount with the same lender.

It would be extraordinary if you couldn't port your mortgage. So no you won't be trapped.
If you need to borrow more you essentially agree a an additional mortgage with your current lender, but will probably have to pay an arrangement fee as well.

This has given me great relief, thank you!

Yes, we ported our mortgage and then added some extra – it’s actually useful as the different sub-mortgages have different fixed rates and end dates of those rates, so if we did (unlikely) come into some money, we could pay off one sub part without penalty, if you see what I mean.

We’re also unhappy where we are and will have to port again.