Selling house mortgage up for renewal April 15

yorkshirepom42

Hey everyone. First time writting a post so hope someone can help. Been a crazy 6 months decided to move out of our home and in with my gf's grandma.

Whilst we weren't there I was lucky to rent it out using consent to lease. The plan was to save for a new mortgage together and keep renting the little terrace out.

We thought we had it sussed. Then we went to our bank (halifax) said we could only borrow a small amount because of the buy-to-let mortgage I had. There advice was sell the house and then come see us.

Anyway to cut a long story short we put the house up for sale which scared the tenant and he's now moving in March. So now we're moving back in no point paying for an empty house. The mortgage on that property is up for renewal in April this year.

I have it with santander at the moment and I'm not 100% what product I need. I don't want to get stung with repayment charges and could do with the DD been small so we can save more each month.

anselld

Mortgages don't need to be "renewed". There would be no point remortgaging if you are intending to sell. Just wait until you sell and then get a new mortgage on the property you will be buying.

Make sure you check the Santander redemption charges if you sell before April.

G_M

yorkshirepom42 wrote: »

The mortgage on that property is up for renewal in April this year.

I have it with santander at the moment and I'm not 100% what product I need. I don't want to get stung with repayment charges and could do with the DD been small so we can save more each month.

You mean it was a 25 year mortgage you took out 25 years ago?

Or it was a 25 year mortgage (or other length), with a 5 year fix ro other discount/whatever?

If the latter, since you plan to sell, do nothing and let the mortgage continue at the standard rate. You will then not be tied in and can sell as soon as you have a buyer, without penalty.

kingstreet

So you've decided to change your plans because one lender told you you couldn't do what you wanted?

Did you speak to anyone else, independent broker perhaps?

There are plenty of lenders who will ignore a self-financing BTL in the background in calculating affordability for the onward purchase.

yorkshirepom42

Thanks for advice guys!

I spoke to a mortgage broker when I first got my mortgage it was over 35 years I was fixed for two years then I got it reduced from 33 years to 20 in April there will be 18 years left on it.

I've now been told I'll just go on santanders standard varivale rate which is 4.76% I'm actually paying 4.69% at the moment so not too much difference plus I am wanting to go on a interest only mortgage whist it's up for sale.