Good offer on fixed rate and bit of advice really

Snow-Munki

Hi,

my 2 year fixed rate ends soon so starting looking around. The offer I've been given by the mortgage advisor is with Portman BS at 4.39% fixed for 2 years but a £2200 fee

Reason for only 2 years is that I plan to move out in about 2 years time to a large house. Would say getting a 5 years fixed rate not be worthwhile ?

Thanks

Will

herbiesjp

Well you could look at a 5 year fixed rate that was portable.

You would need to make sure that your circumstances didn't change that much in order for you to still borrow the same amount of money (if not more) with the same lender

If your circumstances change, and your current lender will not port the mortgage, then being tied in to a 5 year fixed rate would mean you having to pay penalties to leave the lender

HTH

skintlass

Or you could keep that mortgage (if it is portable to the new house) and take out an extra mortgage for the difference at whatever rates you can get for that - thats what I'm in the process of doing

luckyfool

skintlass wrote: »

Or you could keep that mortgage (if it is portable to the new house) and take out an extra mortgage for the difference at whatever rates you can get for that - thats what I'm in the process of doing

Not if the additional mortgage is with a new mortgage lender. Then it wouldnt be a mortgage as by definition that is a !1st charge" on the property. If the lender refuses to lend you enough when porting the mortgage then you will normally have problems and you certainly cant borrow the balance on another mortgage. You might be able to sort out some kind of secured loan but that will tend to be expensive.

Snow-Munki

thanks for the replies. Our current mortgage is pretty low now.

In about 2 years plan to move to a larger place and probably therefore have a larger mortgage.

skintlass

luckyfool wrote: »

Not if the additional mortgage is with a new mortgage lender. Then it wouldnt be a mortgage as by definition that is a !1st charge" on the property. If the lender refuses to lend you enough when porting the mortgage then you will normally have problems and you certainly cant borrow the balance on another mortgage. You might be able to sort out some kind of secured loan but that will tend to be expensive.

I se what you mean but the way I've been looking at it is both with the same provider and I wouldn't try to borrow in total more that they would end me anyway. TSB said it would work fine.