Fixed Mortgage Ending - Thinking of Moving in the next year or 2 - Advice

bluestone_2

Hi All,

Current have a fixed mortgage which will end soon, looking to remortgage. I am planning to looking for a new bigger property in about a year or two. My question is which type of mortgage will be better for me?

I would prefer to have a fix so I know exactly how much I am paying but....

If I go for a fixed mortgage , there is ERC to consider or look for a portable fixed but then I will have to stick with the same lender and their current deals when I move ,is this correct?

If I go for a tracker , there is no early repayment charges (I think?) but rates will likely go up. Question is how much in the next 1 or 2 years?

Love to get views from anyone who gone through the same or thinking of doing the same?

Many Thanks

getmore4less

Whats your follow on rate?

Whats the max you could pay?

How much extra borrowing are you looking at.

bluestone_2

Property Value - 180000
Mortgage Value - 80000
Current Fixed Rate - 5.79%
Follow on Rate - 7.84%
Tried the Ditch my fix mortgage calculator a year ago but no mortgage rate low enough to ditch

Hoping to look for a property in the 300000 range, so say looking for a extra 120000 on top.

Thanks

getmore4less

Ouch on the followon

Well most of your lending will be at the rate availiable at the time you move so I would get the cheapest rate you can now and overpay/save.

You could consider a low cost offset tracker that will let you exit cheaply.

Shame FD have pulled their best deals.

This way you can build up as much as you can to reduce any future borrowing hoping that the lender you pick will have some OK deals at that time so you don't have to switch.

Thrugelmir

Who is your current lender?

bluestone_2

Yeah Ouch!!!

getmore4less wrote: »

Well most of your lending will be at the rate availiable at the time you move so I would get the cheapest rate you can now and overpay/save.

So would I be better off with a Fixed or Tracker if I plan to move in 1 or 2 years?

getmore4less wrote: »

You could consider a low cost offset tracker that will let you exit cheaply.

Will take a look thanks

Thrugelmir wrote:

Who is your current lender?

Santander

bluestone_2

Just an update. My Follow on Rate is not 7.84% as previously stated, was looking at the 2010 SVR rate in error, current Santander SVR is 4.24%

Gave them a call and best they can do for a 2 year fix is 3.49% and £999 booking fee. Looked on their website and they can offer a new remortgaging customer from another lender 2.99% with £795 booking fee but not to existing customer. I don't understand the logic? You get a better deal if you are not an existing customer? And £999 booking fee for doing what?

Will carry on looking but looks like some of the better Fixed Rates has already been pulled off the market

dimbo61

stay on the SVR unless you can get a low rate tracker.
overpay the mortgage and consider 4X income if you want to borrow £200K

Burridge60

It would be prudent to also check the lenders attitude to the amount you would like to borrow in the future.

It wont be guaranteed but would be daft not to check they could do your borrowing for your move if you tied up with them even if it is based on their current criteria.