Help needed

CashSaver_2

I wonder if I could get some opinion on the following:

I currently have a fixed rate mortgage of £110,000 due to expire at the end of July.

I have also just put the property on the market - although we have no offers yet.

The house we would like to move to would mean increasing the mortgage to £290,000 which we can afford and would be accepted on the basis of my salary.

I would ordinarily take a 2 year discount/fixed rate with no overhang.

Can I remortgage at the £110,000 but with an option to extend the borrowing when I am in a position to move.

Or should I just remortgage to a variable with no early repayment charge for now and then take out a new mortgage when I buy the new property.

Any other suggestions.

stanmoresaver

CashSaver wrote:

I wonder if I could get some opinion on the following:

I currently have a fixed rate mortgage of £110,000 due to expire at the end of July.

I have also just put the property on the market - although we have no offers yet.

The house we would like to move to would mean increasing the mortgage to £290,000 which we can afford and would be accepted on the basis of my salary.

I would ordinarily take a 2 year discount/fixed rate with no overhang.

Can I remortgage at the £110,000 but with an option to extend the borrowing when I am in a position to move.

Or should I just remortgage to a variable with no early repayment charge for now and then take out a new mortgage when I buy the new property.

Any other suggestions.

It may be appropriate to sit on the lenders SVR for a while- deeds release, legal fees and valuation costs add up and even if they aren't paid for by you up front, many deals will charge them to you if you move the mortgage in the early years.

Normally it gets messy when you go back for additional funds with split loans on different products.

Hope this helps.

SS

silvercar

If you move while within the 2 year rate, there will usually be penalties for early redemption. Most mortgages these days are portable (do check) which means you will generally be able to take the 110,000 mortgage as is to the new property and then pick a new product from the same provider for the extra amount.

This does mean you are restricting your choice of lender to your current lender. You also should ideally pick a product that finishes at the same time as your then current 2 year deal. This is so that you can have the pick of the whole market two years down the line.