Do I remortgage for a better deal?

pineapple1

I have a £80,000 mortgage with payments of £540 a month and am wondering wether i should remortgage to a fixed deal with lower monthly payments, as I have my house on the market or should I wait to get a new mortgage when my house sells, whenever that may be! I am not tied in to my current mortgage. I know you can get portable mortgages, but am looking to downsize and don't want to end up with over the odds repayments when I don't need to, or excessive redemption fees.

getmore4less

What's the current deal. rate term promotional period til when?
any penalties for overpayments?
is it portable?

whats the house worth?

what cost house are you downsizing to?

pineapple1

I have been looking and know i can get a 2 year fixed mortgage, that is portable with repayments around £430 a month, most redemption penalties at 2%

My house is on market at £250,000

I am hoping to have a mortgage of between £60,000 to £70,000 once everything paid off.

getmore4less

Without the details no one can answer your question properly

Just because it has a lower payment does not make it a better deal.

pineapple1

my current deal is now out of the fixed period so am on SVR, hence, no redemption penalties there or no overpayment penalties. The rate is currently around 5.7% which on my mortgage of £80,000 is costing me £540 per month in repayments, and I beleive it is portable.

Hope this helps

getmore4less

As long as income stack up you could do a lot better than that 5.7% SVR (over 22years?) with the LTV you have.

Its down to how long you think it will take to sell and the costs of setting up a new loan.

I know my mortgage requires me to borrow the same amount if ported so you will probably need a loan that allows overpayments or you will end up borrowing a more till out of the penalty period if you go for a fix.

That 2y fix would be around 3% if you can get it for 430 what fees are there?

pineapple1

hi, the fees are around £1000+