Selling property which mortgage???

yorkshirepom42

I currently have my house up for sale and my mortgage is coming to the end of a two years fixed contract I know I'll go into santander SVR once the two years is up.

I'm currently paying 4.69% I know santander SVR isn't too much difference. I want to reduce my DD and I want to pay interest only whilst the house is up for sale is this a good idea?

I don't want to get locked into a fixed contract because there will be a early repayment fee if the house sells within that time.

So basically my question is what's the best mortgage to go on whilst selling a house?

ViolaLass

Why not just sit on the SVR? No fixed contract that way.

kingstreet

Your chances of being switched to interest-only without an acceptable repayment vehicle in place are slim to none, unless you make a case for financial hardship.

yorkshirepom42

I guess I could just stay on SVR I was just looking at it monthly not the big picture I guess. I know you have to reapply for a interest only mortgage. Will going with another provider be an option? Or is that more hassle which I don't need

JimmyTheWig

How realistic is your asking price?
I.e. how long are you planning on being there?

It could be that you'd only have the new mortgage for a couple of months. I'd be shocked if the best thing was to do anything other than stay on the SVR.

yorkshirepom42

Had four estate agents in and not been greedy with the price. Hopefully won't be there much longer but won't be an issue if we were. Plus doing lots of work to it to improve the house too it's a fine line.

Rollinghills

The best deals have high initial fees but you may be able to find something that is fee free / low fee and no early redemption charges and still gets you a better rate. But if the house sells soon savings would be minimal so whether it's worth the hassle it's up to you really. I'd forget about interest free, it's difficult to get those.

Thrugelmir

yorkshirepom42 wrote: »

I guess I could just stay on SVR I was just looking at it monthly not the big picture I guess. I know you have to reapply for a interest only mortgage. Will going with another provider be an option? Or is that more hassle which I don't need

Why the requirement to switch to an interest only mortgage?

yorkshirepom42

Only reason to switch is don't see point of repaying the mortgage I'm trying to get rid of and the monthly DD seen as my gf isn't going back to work as it wouldn't be worth paying for child care etc

yorkshirepom42

Trying to reduce the DD not get rid of it obviously

getmore4less

you may find you lender has a retention product with no fees or penalty period that has a lower rate.