Advice needed with regards to moving home & increasing mortgage.

nickinoo

We are in the process of buying a new property & will need to increase our mortgage by between 83k & 90k (depending on what we actually get in the new house etc).

I am dealing with a whole of market IFA as recommended by the developer (we get £500 cashback if we use them).

Anyway our existing fixed rate with the Nationwide finishes in December & we are due to complete/exchange on the new property in July so we will incur a penalty of up to £500 if we change mortgage provider before then. The IFA has suggested we take out a top up for the extra until December & then changing mortgage provider but the top up will be at standard rate which will cost us around an extra £60 a month so we aren't saving much by not paying the penalty.

We will have to pay the Nationwide a valuation fee to arrange the new mortgage & then I would assume the same again if we switch lender in 6 months. Is it just me or does this seem like a bad idea?

I personally would rather just go with Nationwide for the new mortgage at a fixed rate from the start which I beleive would also avoid the early redemption penalty.

Sorry if this doesn't make sense-I know what I mean!