Best fixed rate options for remortgaging but poss house move in next 2 years?

Hi,

Apologies in advance for sounding dim over this, but here goes....

We'll be looking to move house in the next year or so (hoping to trade up from a flat to a house) and our current fixed rate deal is coming to an end in 3 months time. I'm anxious to get a new fixed rate deal whilst the rates are still low, but am confused about what difference the fact that a potential house move will make in terms of what term of fixed rate deal we should go for ie. I know a 5 year deal sounds more sensible than a 2 year one in the current climate, but if we're moving in 2 years time, say, will that mean we have to remortgage anyway? Or, would we be able to take a 5 year mortgage with us when moving property. I'm just a bit confused, so any help would be gartefully received!

Thanks,
RoyGo

Replies

  • trynsavetrynsave Forumite
    812 Posts
    Part of the Furniture 500 Posts Combo Breaker
    ✭✭✭
    :confused: A lot of mortgages are portable with lenders consent, but not all, so check!

    If I was planning a move in the near future I'd look to get a 5 yr fixed for security, but although I'm no expert (or fortuneteller), I'm guessing that for a good few years at least LTV lending will be tight. I'd therefore be looking for one which I could overpay on to improve my chances of securing a good deal.

    Another point to be wary of is that many lenders don't like taking a second charge over a property. This could mean that although the lender you choose now might be the best on the market, when you come to move they might be the worst. Even if you were allowed to port, you might be stuck getting the extra you need at a really uncompetative rate.
This discussion has been closed.
Latest MSE News and Guides