Want to port in about a year

city_gent_2

Hi all,

First timer on here - just wanted some advise on what to do.

Currently have a £74k mortgage (around 50% LTV) and its up fro remortgage. We want to port in about a year to a family home which will probably be approx £100k extra so £174k.

concerns are as follows:

1) Base rate will increase and therefore so will tracker and fixed rates. My understanding is that we can only port on the existing amount at the rate we get now, so could be open to having a v expensive £100k mortgage in a years time.

2) Most all good mortgages have an early repayment charge, so getting out of one in a years time will cost us (about £1000 in most cases)

What would you advise be? Fix now and accept that we're going to be faced with a potentially costly mortgage when we move?

I came up with a brainwave about maybe releasing some equity from the house (not sure whether this is feasible!) and getting into a higher fixed mortgage now, obviously increasing the interest payments now but maybe sheltering us from further rate hikes when we port? Or is that just a stupid idea

Any advise would be welcome. I would say I'm marginally risk averse when it comes to these things!

Thanks

CG

Thrugelmir

What rate of interest do you currently pay?

Which lender is the mortgage with?

Leon_W

I suspect that you would be better off just staying where you are as any early repayment charges would outweigh any savings.