early repayment costs

amethyst_13

Hi, just wondered if anyone could clarify for me...
Me and my ex partner have a joint mortgage and the mortgage deal is about to run out. At the moment not sure if I want to take on mortgage on my own but if we take out another mortgage deal (for example 2 yr fixed rate) if we do then decide to sell and get rid of the mortgage (as in I would just rent instead) would we then need to pay early repayment costs???
In which case would it be better just to stick with the standard variable rate until I know what's best to do???
Any advice would be greatly received

bigadaj

Probably best to stick on the lenders SVR until you confirm whether you want to sell or not. You can always look for new deals in a few months if you decide to stay.

Really need to confirm what your lenders SVR is; you can always move but you would then normally not be able to sell or change for six months.

Jimbo1976

If you take out a mortgage with early repayment charges, then the lender will enforce these if you sell. You may be able to rent the property out but you would need to get consent to let from your lender.

As suggested by bigadaj, it is probably best to stay on SVR until you know what is happening

kingstreet

If you enter into a new deal, ensure it is portable. This means the rate can be transferred to a new mortgage on a new property if you do move.

Bear in mind, the new mortgage will be subject to status and valuation and there is no guarantee the lender will wish to lend to you again, which would leave you with a penalty to pay to get away.

Staying on SVR for the time being may be the safer, if more expensive option, in monthly payment terms.