Remortgaging

3 replies

kirinm · 07/09/2021 11:57

We are looking to put our place on the market although probably not until spring. Our fixed rate mortgage expires in November. We've only had fixed rate mortgages so I'm unsure what to do.

Tracker mortgages seem to have quite high interest rates but the minimum time for a fixed looks to be 2 years. Is it easy to port mortgages if we have to go down that route? Or is there another option I am missing?

OP posts:

blacklilypad · 07/09/2021 13:08

Speak to a mortgage broker. We got a fixed mortgage that had no penalty for early redemption. It was a little higher than a normal fixed mortgage but still much cheaper than staying and going on to the variable.

Porting can be fine but sometimes your current mortgage won't lend on your new property for any number of reasons. My friend got stuck in their house until the end of their mortgage fixed term (I think there was 3 years left) as they no longer fit their criteria for lending even though their circumstances were unchanged. You can pay for early redemption but it is usually £1000s and my friend couldn't afford it

poorbuthappy · 07/09/2021 13:10

Find out what the standard rate is that you'll automatically go on.
Work out if you can afford it, and the possible interest rate increases you could be subject to.
Decide if you can deal with it until you move.

Original poster

kirinm · 07/09/2021 15:06

@blacklilypad

Oh that would be a good idea. I forgot we can always pay the redemption penalty although our current one was £5k which is fairly chunky.

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