Portable 25 year fixes

Guy_Montag

Hello mortgage gurus,

I'm not planning on buying just yet, but I'm curious to know what the best 15-25 year fixes available are. I know you don't like to give names, but rates would be interesting.

Now the important bit - how portable are these? Can I take them to a new place when I move? Can I only move in certain years? Do I have to add extra through the same company or can I get a different mortgage to raise the extra?

The reason I ask is that I'm not very settled yet, I'm also single so likely to buy, when I do, a small place, potentially upgrading to a larger place if I have a family.

JoeK_3

Guy_Montag wrote: »

Hello mortgage gurus,

I'm not planning on buying just yet, but I'm curious to know what the best 15-25 year fixes available are. I know you don't like to give names, but rates would be interesting.

Now the important bit - how portable are these? Can I take them to a new place when I move? Can I only move in certain years? Do I have to add extra through the same company or can I get a different mortgage to raise the extra?

The reason I ask is that I'm not very settled yet, I'm also single so likely to buy, when I do, a small place, potentially upgrading to a larger place if I have a family.

Hi Guy, It's a bad time at the moment to talk about fixed rates as there is talk of a rate increase in May and all the lenders are pulling their fixed rates.

You can get fixed rates that are portable. This means that you can take the mortgage to another property.

How this works is that you pay a redemption fee to the lender when to sell your property and providing that you take out a mortgage with them within say three months, for the same amount, they will pay the redemption fee back.

Hope this helps but come back and ask the same question nearer the time!

Regards
JoeK

MortgageMamma

Hi Guy

I quite like the idea of the long term fixes - I think you are tied in for either 5 or ten years depending on the provider

I've not looked into them in huge detail because I'm never asked about them but you've inspired me to do a bit of research later

I actually prefer capped rate mortgages to fixed as they give you the opportunity to take advantage if rates decrease but still offer the protection of a maximum rate known as the cap. There are quite a few springing upon the market at the moment, Woolwich are renown for them, Abbey have them and Skipton has got a really good five year one

Know its a bit off topic but just wanted to ensure you were aware of their existence

MM

Spangled

I remember reading about one deal which was a 25-year fix - but you only had ERCs for the first ten years. So after the 10-year lock-in period, you could either stay on the fixed rate if it was still competitive or remortgage elsewhere at no penalty if it wasn't. Can't for the life of me remember which bank/BS it was with though! Pretty sure it was portable and allowed at least 10% annual overpayments. I'll see if I can dredge up the info.

MortgageMamma

Think its with Nationwide but scarborough building society had some long term fixed a few months ago, not sure if they are still there

homer_j_3

Could I just add that you should not use portability as a consideration in your mortgage choice as it is not guaranteed.

You will need to pass underwriting again and the new property will need to meet their criteria etc and of course the longer you fix for, the longer they have to change their criteria etc....

Spangled

Ah yes, it was the Nationwide - thanks MM! More info on the ERCs on their 25-year fix here: http://nationwide.co.uk/mortgage/remortgage/fees.htm#redemp