Mortgage and moving confusion

hwalkerh

Hello

I bought my first house nearly 3 years ago and my fixed rate mortgage is about to end. I am thinking while rates are low to go for a 5 year fixed rate mortgage. Being my first home i have a few questions about when we move.

If i move while i have a 5 year fixed rate i would be moving to a bigger house and would need a bigger mortgage.
Would i have to pay the early repayment charge and then take up a new larger mortgage?
Or can i just increase my mortgage with the mortgage lender i will be with?

I am pretty confused about what happens if you are on a fixed rate mortgage and you want to move, any advise would be great

thanks

wodgerdodger

The normal process is that the amount of the outstanding 5 yr fix is "ported" to the new property and any additional amount needed would be on whatever rate the Lender had available at that time. Again, normally there would be no penalty or ERC payable if you were porting the product assuming that the sale and purchase were simultaneous. If there were likley to be any gap between selling the current property and moving into the new one double check with the Lender what their rules are as some might still apply the ERC but reimburse it provided the new loan was commenced within a specific timescale.

Hope that clarifies things.