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Stick or twist - mortgage dilemma.
chaucer
Posts: 261 Forumite
I would appreciate some guiance and advice.
I currently have my house on the market. I actually had a buyer and a property to buy but both deals fell through at the last moment.
The mortgage offer I was goiing to buy with expires in a few weeks. My existing mortgage discount period also expires very soon. I may want a new mortgage if I can find a buyer and a house to buy but do not know when that will happen.
My existing lender has offered three options.
1] Do nothing. My rate will revert to standard variable rate @ 7.32 with repayments @ £488/month.
2] Move to a new discount rate (1.9% off svr) for a two year period. This has a rate of 5.39% and repayments @ 432.54/month. It has a penalty of 3% = £1601.93.
3] Move to a new tracker rate (0.9% above base rate) for a two year period. This has a rate of 5.34% and repayments @ 431.12/month. It has a penalty of 1% = £533.97.
Both these new rates are fees free (apart from £60 admin charge) and both can be ported to new products with the same lender should I need to remortgage.
However, lender's rates are not competetive so would probably look to pay penalty fees.
Many thanks for any help.
I currently have my house on the market. I actually had a buyer and a property to buy but both deals fell through at the last moment.
The mortgage offer I was goiing to buy with expires in a few weeks. My existing mortgage discount period also expires very soon. I may want a new mortgage if I can find a buyer and a house to buy but do not know when that will happen.
My existing lender has offered three options.
1] Do nothing. My rate will revert to standard variable rate @ 7.32 with repayments @ £488/month.
2] Move to a new discount rate (1.9% off svr) for a two year period. This has a rate of 5.39% and repayments @ 432.54/month. It has a penalty of 3% = £1601.93.
3] Move to a new tracker rate (0.9% above base rate) for a two year period. This has a rate of 5.34% and repayments @ 431.12/month. It has a penalty of 1% = £533.97.
Both these new rates are fees free (apart from £60 admin charge) and both can be ported to new products with the same lender should I need to remortgage.
However, lender's rates are not competetive so would probably look to pay penalty fees.
Many thanks for any help.
0
Comments
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If you are thinking of moving sometime this year then if I were you I'd pay the svr on the existing mortgage & look for a new mortgage when you are ready to buy another house.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0
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