Moving home in fixed rate period? (possible stupid question!)

fluffymuffin

Hi Guys

I am one year into a 3 year fixed rate deal at 5.99%. I recieve a letter from my mortgage company this morning offering me to switch to a 5 year or 10 year fixed at a better rate and they will waiver any early repayment charges and arrangement fees.

My only hesitation is what happens if I want to move home in the 5 year fixed rate period? Do you repay that mortgage, with associated fees and then get a new one - I assume this is what happens but I've never looked into it and just want to know what I'm getting into. So basically - if you're in a fixed rate mortgage and you wanna sell up and move how does it work?


Told you it was stupid! :-)

cbrpaul

hi,
you need to ask them is the mortgage " Portable" ie it transfers to the new property !!!

fluffymuffin

ooh yes its portable I just asked them. They've offered to drop from 5.99% at present to 5.19% if I sign up for 5 year fixed term with no charges for transferring (early repayment/arrnagement). I've got very small equity in the property so on looking at what offers are out there this seems pretty good. Apparently its fully portable too as being tied to my current house fo 5 years was my worry.

Newbird

Sounds like a good deal to swap onto the lower rate, with no disadvantage, no fees and portable if you move etc. If you are happy with that fixed deal, its better than what you're on now, so whats not to like?

Go get it fluffymuffin!

fluffymuffin

Thanks Newbird! I'm gonna go for it. Nothing to loose really - think that was what made me hesitate - it seems they're doing me a favour and there's not really a catch....which is an odd thing to happen! I'm going for it - £85 a month in my pocket and not theirs yay!

Newbird

You're welcome - you could take it one step further and put that extra £85pm back into their pocket, if they allow overpayments, and lower the term of your mortgage and lessen the interest you pay! :money:

fluffymuffin

I am gonna try and weigh up if it would be better to pay it onto any of my other debts first. I have a high rate credit card that I'd like to batter down a bit.

Newbird

Yep, best to do that first. x