selling during fixed rate period

phatbear

I got my 1st mortgage approx a year ago after a relationship break up.

My mortgage has a 7 year fixed period, when I took it out i was going through my "no one will ever love me again" period and assumed i wouldn't move during that 7 years.

well long story short i soon met someone and we are now talking about buying a house together, in the next year.

ive looked into the financial implications of selling during my fixed rate period and im willing to accept the loss.

i was considering letting my flat out but it seems like this is one hell of a faff.

anyway my question (at long last) is will selling up during this fixed period have any negative impact on me being able to get a new mortgage?

ChopperST

Provided you have kept up your repayments it will make no difference to you getting a new mortgage.

You will have to look through your paperwork to see what your ERC (Early repayment charge) is and see what sort of penalties you have to pay. This is typically a percentage of either the outstanding balance or the original loan.

A consent to let may be an option in the short term to allow the fix to end and then sell when you are in your SVR period with no tie in.

Dave_Ham

As above, it will have no impact on a new property so long as you pay on time.

Do you know what the Early Redemption Charge is as on a 7 year fix, it could be a hefty figure (depending on lender and mortgage value) and therefore you may re-consider attacking consent to let (which equally with an appropriate lender will have no impact on future purchase with partner)

All the best

phatbear

thanks chaps.

the erc is going to be about £4000, its a percentage of the monies paid and because of the nature of the break up, ie i walked away with nothing but my dignity, i only have a small mortgage £82k.

All payments are upto date and I've even been over paying on a monthly basis.

I really wanted to rent it out but there seems to be so many hoops i have to jump through if i want to use a letting agent and theres always the risk of someone not paying etc, and i assume this would then count against me during the affordability interview for my next mortgage?

thanks again

Dave_Ham

Does not count against future purchase with some lenders, does with others.

For £4k I would be exploring the consent to let option, although it does come down to how much you value your own time/stress financially.