Selling house during a fixed term mortgage

rdewell

Hello,

We bought our first house in December 2008 with a 5 year fixed mortgage with C&G. However, we're now keen to sell the house and relocate in a new area, and possible rent until we're clear if and where we would like to buy again.

My fixed rate mortgage has a penalty fee if I re-mortgage before the 5 year term is reached. I've researched online but without luck - but does anyone have advice on this matter and if there is a way I can sell my house without accuring a fee for breaking the fixed term mortgage?

Really appreciate any help, Rob

CloudCuckooLand

You can ask if they will hold "porting" the product to a new property - they may agree 3 or 6 months. Ask them.

The fee charged may drop, as time passes. Check your paperwork. Then, perhaps, delay going on the market until end of the summer, so by the time you've found a buyer and the paperwork has completed, its 2012 and the charge has fallen..?

Adem_3

I'm in the same situation having bought mine in March 2009 with a 5-year fixed from RBS.

The penalty fee goes down every year but if I quit now it would cost me a few grand. I think the best thing is to speak to your lender and it may be a case that you can get your new mortgage with them and avoid the penalty but obviously be on the same fixed-rate. Maybe.

Good luck with this and keep us updated.

rdewell

Thanks for your help guys!

Now I know the term 'porting' your mortgage i've found loads of advice online about it. I will speak to C&G and go from there...

Although, my fee for breaking the fixed deal is around £10,000 !!

Thanks again!

puddy

i ported my 10 year fix in 2009, they take the penalty off you at the start but then refund it. that was barclays, i dont know what the others do

80schild

same problem here! My mortgage is due for renewal in March but we are due to complete on a sale in the next few weeks so looks like we will have to pay the early exit fees! Am thinking of making a pleeing phone call but doubt it will work!!

CloudCuckooLand

80schild wrote: »

same problem here! My mortgage is due for renewal in March but we are due to complete on a sale in the next few weeks so looks like we will have to pay the early exit fees! Am thinking of making a pleeing phone call but doubt it will work!!

If its that close to the end-date, you may find them sympathetic. Definitely worth the cost of a phone-call.