Mortgage with no/low upfront fees and no tie in??

boots_babe

Hi,

We've had our house on the market for a while, nearly sold but it fell through, and are now still waiting for a buyer.

Our current mortgage deal runs out at end of June, after which we will be on the SVR.

We don't want to take out a new deal with a tie in, because hopefully we will sell and we will need to remortgage as our new property will be considerably more expensive.

So, I realise this is asking a lot and it probably doesn't exist BUT thought I would at least ask! I have seen mortgage products with no tie in, but presumably up front fees are higher. Is there anything which would be suitable for us to switch to, with no/low upfront fees and no tie in? Then when we do finally sell we can switch to our new mortgage?

I realise the answer is probably no

MortgageMamma

there won't be many with no upfront fees and no tie ins, there will be a few though. Don't expect the rates to be overly competitive - best way to find products of this nature is through a broker

silvercar

With your house on the market I would be inclined to wat until it is sold. If you take a mortgage now and find it is not portable to the new property you will be stuck.

Many mortgages advertise themselves as portable, but the new mortgage is a new decision based on lending criteria when you move. If the lender won't approve you won't be allowed to transfer the mortgage and will suffer any penalties. Better to have the choice of the whole market for a new mortgage than save yourself a few pound for the next couple of months.

MortgageMamma

The OP mentioned nothing about porting, they simply stated they wanted a mortgage without a tie in i.e. early repayment penalties so they could ditch the mortgage whenever they wanted

apk1

Who is your current mortgage with, they more than likely have a tracker rate with low/no fees and no penalties, rate may not be brilliant, but hopefully you will only pay it for a month or so. I would tend to avoid anything with any set up fees.

JoeK_3

boots_babe wrote: »

Hi,

We've had our house on the market for a while, nearly sold but it fell through, and are now still waiting for a buyer.

Our current mortgage deal runs out at end of June, after which we will be on the SVR.

We don't want to take out a new deal with a tie in, because hopefully we will sell and we will need to remortgage as our new property will be considerably more expensive.

So, I realise this is asking a lot and it probably doesn't exist BUT thought I would at least ask! I have seen mortgage products with no tie in, but presumably up front fees are higher. Is there anything which would be suitable for us to switch to, with no/low upfront fees and no tie in? Then when we do finally sell we can switch to our new mortgage?

I realise the answer is probably no

The product is called a "flexible" mortgage.

JoeK

Dave_®f©

I think the ING mortgage rate is only 0.14% above base rate at the moment on their base rate tracker giving a rate of 5.64%. No set up fee and free to repay early with no penalty. Looks like that might be worth investigating to see if that suits your short term (hopefully) needs.


LINK HERE

herbiesjp

Agree with apk1

Ask your current lender first what deal they can move you onto that have no early repayment charges, and least fees.

If they have none, then there are plenty of fee free deals to move on to, but you will need to look at the cost of leaving your current lender and if it will be worthwhile.


It all depends on your actual mortgage figures tbh, as paying SVR on a £30k mortgage will have less impact than on a £200k mortgage

So a bit of number crunching will be needed

HTH

boots_babe

Thanks for all the replies, you've made some interesting points.

silvercar - we definitely would not want to port the new mortgage to the new property. The existing mortgage is for £150k, then new mortgage would be for around £300k, so we would want to be free to look around and choose the best deal on the market for that size of mortgage.

MortgageMamma - thanks for your replies. I realise that anything along these lines won't be overly competitive, but I figured it would have to be better than the SVR - hopefully!

apk1 - current mortgage is with Stroud and Swindon. I contacted them a few weeks ago with a query and they weren't overly helpful and in fact I found out afterwards that they had give me the wrong info. So possibly would prefer not to stay with them.

Dave ®f© - will definitely give that a look , thanks!

Think we need to go off and take up some of the suggestions here - mortgage broker, ING Direct...then work out the figures. Obviously hoping that we will sell soon, in which case we won't care too much about staying on the SVR. But for all we know it could drag on for another year and we would then be kicking ourselves.

Jeannine

I really didn't want to pay huge fees upfront either, so I remortgaged to ING Direct a couple of months ago. The rate has gone up to 5.64% (5.8%APR) but I did not pay any fees at all (except £125 exit fee from Coventry BS). And there's no tie in so if rates do go up too much...I shall go elsewhere!