Are we Stuck?

allylou2002

Hi everyone!
First time poster here...
We would love to move, we are itching to be honest there are a lot of new developments being built around us.
I renewed my mortgage and took 3 years fixed rate - I paniced tbh with the scariness of rate increasing and low and behold they drop!!!! Anways.... I called the mortgage company, and the crazy thing is a mortgage on a new bigger property would be less than waht we are paying now but in order to get out of our fixed rate we would be looking at paying £2000ish.... which obviously is money we just dont have. Is there anyway we can avoid this payment or anything we can do to avoid it or should we just bide our time and wait out the time we have left (May 2011).

Any advice appreciated.... x

herbiesjp

Is the mortgage portable?

You may be able to buy the new property, but in order to avoid paying the £2k, you can port the mortgage across to the new property - no guarantees it will get accepted though

Otherwise, put £2k less deposit to cover the penalty charge

natman

Hi, It may be worth chatting to or sending your details to these......
http://www.mortgagemonitor.co.uk/

Many have had success with remortgae or porting mortgage to another mortgae provider.
They are free to use.
Basically with porting, just say you owe 70k on current house, you buy a new house for more and you need 40k extra to make 110k.
Some mortgage companies ( and i have just done this) will allow you to transfer the 70k on your current fixed deal and take up a new amount of 40k on a new product - Bingo

Or you get a new mortgage for teh whole 110k, and probably pay get out fees for ending your fix deal early!!!

You are not stuck at all, theres more options around than you think. have a look at the mortgage monitor above though, could be helpful.
Speak to your current lender too, they may even say if you keep with them and take out a new product with them they will not pass on any fees!!!!
Good luck

jules0581dancing

Can you rent out your property?? This means no penalties and your mortgage will still be getting paid. x