Do I need to change my mortgage?

MrsJ2008 · 30 September 2008 at 8:11AM

Hi,

My fixed period has ceased some time ago and I've been on a variable rate ever since as i'm trying to sell my house.

With the state of the market at the moment i've not been able to sell my house and now am worried that the interest rates are about to rocket. Should I put myself back on a fixed rate and then pay a penalty to get out of it once I sell my house or should I sit it out as we are?

Any advice would be greatfully received x

herbiesjp · 30 September 2008 at 9:22AM

You best bet would be to stay on your current deal which has no penalties, or to find another deal with no penalties also.

Getting yourself tied in would not normally be advised but it really does depend on the figures you are are looking at, see what kind of impact a penalty would mean for you

And also if you are borderline on your budget, what an increase in interest rates would mean to you in terms of your monthly affordability.

_Andy_ · 30 September 2008 at 10:01AM

MrsJ2008 wrote: »

Hi,

My fixed period has ceased some time ago and I've been on a variable rate ever since as i'm trying to sell my house.

With the state of the market at the moment i've not been able to sell my house and now am worried that the interest rates are about to rocket. Should I put myself back on a fixed rate and then pay a penalty to get out of it once I sell my house or should I sit it out as we are?

Any advice would be greatfully received x

Are you wanting to sell and then buy, or will you be renting afterwards?

cupid_s · 30 September 2008 at 10:28AM

When this happened to me I transferred over to their tracker rate. I'm paying over 1% lower than the SVR but have no redemption penalties and can overpay as much as I like.

MrsJ2008 · 30 September 2008 at 6:50PM

Thanks for the comments.

I'm looking to sell my house and then buy another with my partner.

Short and simple background - equity is mine. We'll both put same amount into next house.

BYALPHAINDIA · 1 October 2008 at 3:00AM

I would try and get of your Variable Rate ASAP as it could cost you more, I know you will get penalised but at least you will know what is what.

try get onto a fixed 5yr rate with the same lender, Doing that will show them that you are willing to stay with them and in return they should look after you financially.

What if the house doesn't sell?

Have you got a plan B?

Rent?

Renting is very popular at the moment, The Estate Agents are filling up with rentals.

Best Of Luck.;)

herbiesjp · 1 October 2008 at 8:19AM

Getting tied into a long term deal could cause problems though.

Portability of the deal is an option, but as other posters on here have found out, portability is not guaranteed. Taking a 5 year fixed rate does not mean:

Doing that will show them that you are willing to stay with them and in return they should look after you financially

lethal0r · 1 October 2008 at 9:23AM

BYALPHAINDIA wrote: »

try get onto a fixed 5yr rate with the same lender, Doing that will show them that you are willing to stay with them and in return they should look after you financially.

thi isnt the 1950s. now the customer is just a name on a screen with a figure showing how much money the bank makes off them.

koexelek · 1 October 2008 at 9:30AM

herbiesjp wrote: »

Getting tied into a long term deal could cause problems though.

Portability of the deal is an option, but as other posters on here have found out, portability is not guaranteed. Taking a 5 year fixed rate does not mean:

Strongly agree.

Keep your options open until you move. If you tie into a five year fix, them want to move, most lenders WILL allow you to port the rate.
HOWEVER, if they won't, you will be paying them a huge penalty to get out of it.
Not worth the risk, however slim it might seem