5 Year fixed rate ended & buying a new house

skyking_comms

Hoping someone can provide some advice as Im unsure how best to proceed. My 5 year fixed rate (5.25%) with Halifax comes to an end in April and I go onto a variable rate (3.5%). This is great as for the next few months I will be saving money!

But.. I have just bought a new house which I plan to get an extension on. My LTV will be just under 85% as Im including the money for the extension. Ive always gone for fixed rates and the best 2 year deal I can get is 5.69% with the nationwide. For the first time im considering a variable rate for either 1 or 2 years as I cant imagine a variable will go above 5.69 in this time due to the financial climate. Famous last words.
So are there any cheaper variable rates out there? Can I carry over the Halifax 3.5% variable to the new house?
I plan to have the house revalued in a couple of years to take into consideration the new extension, so id hope my LTV will be lower. At which point id probably go for a fixed rate.

Would really appreciate any advice as Im meeting with the mortgage advisors on saturday and have to make a decision for the house move to go ahead.
With 2 young children I need to save as much money as possible :-)

Forgot to mention its a repayment mortgage over 25 years im looking for.

Thanks,

'Motgage novice' Darren

Crashandburn

Depends on what LTV you are on at the moment. If low LTV now, then you could get your current mortgage on to a nice fixed deal now.

Once the move comes, you port this deal across and top it up with another product up to the 85% LTV. Plus side is that some of the debt is at the lowest rate based on your old LTV. Down side is possible two set up fees.

If with Halifax, worth checking their internal transfer products which can happen immediately.

skyking_comms

Its not as straight forward. I only own 75% of the property due to a housing association deal. They own the other 25% which they take back on the sale of the property. Theres no rent etc to pay like the deals around now.
The new house I will own 100%.

I guess im looking for the best short term deal (1-2 years) for a 85% LTV, whether it be variable, fixed or maybe tracker?
Just dont want to go over a 5.69% rate within 2 years otherwise I would have wished id have taken the fixed rate.

Thanks

Crashandburn

Still check with own lender. Some of their 2 year fixed deals at 75% are 4.79% with no fees. You port this part of the deal across and top up on late 5s deal.

However, they might not offer you this product transfer based on the current shared ownership of the current property. Still worth checking

skyking_comms

I will check with our lender. Thanks for the advice!