Fixed rate ending on property but unsure about moving now

[User908752157]

My fixed mortgage rate is due to end in August. The bank have sent a letter saying I should call them to discuss a new rate.

I dont love my current property and would need to move soon as too small (children sharing a room). I am very unsure about where I want to move to next (this area or much further afield and feel I need more thinking time).

Will I be able to set a new fixed rate on current property or would I be financially penalised if I move home,say next year?

If it is relevant I would also intend to use some savings towards the mortgage is August so that this tine I'm borrowing less.

Any advice?

You are best speaking to a broker. The best interest rates are mostly on 5 year fixed mortgages at the minute but not all of them you can move without paying an early repayment charge. You can get fixed rate mortgages that you can move with you. A two year fixed rate might also work depending on when the early repayment charge ends. However, a broker can take into account how much you’ll be increasing your mortgage by, when you are looking to move and advise you accordingly.

Most mortgages are portable, meaning you can take them to a different property. Check this with your bank.

Best to chat things through with a broker, but most mortgages are portable so can take across to a new property. Only downside of this is if you are increasing your mortgage when you move you will be stuck to the one lender you are already with for the top up amount (which will be on a new rate, not the one you are porting)

You can port most mortgages now. However, check the terms and conditions of porting; I remember when we moved, we ported but it had to be the same amount borrowed or more. It couldn't be less. So definitely make the extra payment in August when you remortgage, make sure your new mortgage is portable and then I'm assuming when you move it will be a bigger house so more expensive?

Have a chat with a broker.

Phone the bank and talk to them about it. If they are offering you a good fixed rate deal, ask what would happen if you were to move next year. Would you have to pay a penalty or could you port the mortgage across to the new property without any additional cost?

Thanks everyone. I'm so disappointed in myself for not being able to make a decision on a move but it's good to hear I just need to have the conversations described and it won't mean the end of the world.