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Which type of mortgage?
shell_542
Posts: 1,333 Forumite
Our Fixed Rate mortgage is coming to an end and we are wondering which mortgage rate to take on next.
We are hoping to sell up and move within the next year or 2 so would rather not have another fixed rate for a number of years to avoid early repayment fees, but which kind of mortgage would be best value to take on in these circumstances? Any advice greatly appreciated.
We are hoping to sell up and move within the next year or 2 so would rather not have another fixed rate for a number of years to avoid early repayment fees, but which kind of mortgage would be best value to take on in these circumstances? Any advice greatly appreciated.
August GC 10th - 10th : £200 / £70.61
NSD : 2/8
NSD : 2/8
0
Comments
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Maybe consider an Offset mortgage with no ERC'sI am a Mortgage Adviser. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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The better rated products have early repayment penalties. If it saves you a lot of money, it may be better to choose a product which you are sure will end before you need to complete a sale/purchase.
18 month or 2 year fix with ERPs which match?
They are likely to be under 3% if you have a reasonable amount of equity. If unsure, a penalty-free lifetime tracker may be a good bet too.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
There's little equity in the house and uncertain of when we'll be in a position to sell, it may be a couple of months or could be a couple of years so wasn't keen on another fixed rate.
Thank you for the suggestions so far. Will look into shorter term fixed rates and trackers.August GC 10th - 10th : £200 / £70.61
NSD : 2/80 -
Could you let me know if we just allowed our current mortgage transfer to the standard variable rate once the fixed rate comes to an end, are there normally ETFs on those?
As the SVR is currently a lower rate than our fixed rate at the moment we could just leave it on that if the house move is looking to be soon.August GC 10th - 10th : £200 / £70.61
NSD : 2/80 -
Typically, there are no early repayment penalties once you roll onto the follow-on rate of your existing mortgage.
Check your paperwork for any terms and conditions which apply, just in case...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Great, thanks for the helpAugust GC 10th - 10th : £200 / £70.61
NSD : 2/80
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