Mortgage Worries

skyela

Hello,

We bought a house two years ago, with the intention of staying here a lot longer than now it seems possible to.

We took out the mortgage in Sept 2011, and the mortgage fixed rate is due to end 03/09/13. We fixed for 2.89% then, but the mortgage is due to shoot up to 4.74% in a couple of weeks, when it then switches over to the variable rate. The mortagage is with Santander.

We are now looking to move in the next few months.
Is it possible to start a new fixed rate mortgage, even though we do not intend to stay here for the fixed period?
Say we fixed for another two years - would we be allowed to do this and then for us to move in a few months? Or is there anyway to go onto a flexible mortgage where there is no minimum time limit, but without paying a fortune to them on their 'variable' rate?

We don't know if buying the new property will be a chain as such as we could move in with family whilst looking for the new property to make it easier to sell our place - would this itself cause problems, if it isn't a straight switch with properties, but maybe a new application altogether.

Thanks for any help.

hamster2013

yes - but when you move, you will need a new mortgage, and that will incur penalty on your 'new fixed one'

dotdash79

You might be able to port your mortgage to the new place depending on the gap not being too large between completing on the new place and selling yours. otherwise EPCs will apply.

Extra borrowing might be covered at a different rate from the same lender. If you have affordability issues when you move and need to go to another lender then you would have to pay any ERCs