remortgaging before selling house

Jamsyke

Just something I want to know before getting engrossed in the Remortgage Guide.

My discount rate is up in 6 weeks.
I may sell my house in 4months/6 months/1 year, somewhere in that ball park.

As a general rule, is there any point shopping around for a new mortgage if I plan to sell the house within a few months of taking it out? Are there any penalties related to this?

herbiesjp

Depening on the mortgage amount involved, you may well find a fee free re-mortgage with no early repayment charges.

It may well bring down your monthly payments compared to what your current lender would be offering you - but don't forget to ask them what is on offer also.

mistythyme

Depends on any exit costs from old mtge (most banks will charge admin fees etc) and set up costs from new (including fees, survey etc) - generally you need to look at monthly saving times the amount of months you have left versus the costs of moving.

And if you do move then check out the repayment costs on the new mortgage (and dont go for a fixed rate where you would have additional early repayment penalties)

HGLTsuperstar

Also will you be buying elsewhere? If so a portable mortgage, if the rate is good for you, may be the best option. However remember if you need to increase your loan size, the excess wont be at the same rate