Need to renegotiate mortgage but also selling!

ophelia0401

Hi! Would appreciate any advice. Mortgage fixed term is due for renegotiation in April but will be hopefully putting house on the market in June. Any advice would be appreciated for when I contact the Building Society soon to renegotiate terms of mortgage. Thanks!

Keekles

Common sense would be to find a product that doesn't have any Early Repayment Charges - unless you're intent on porting the product?


If the product has portability / top up options, you're best to speak to them regarding that as a future plan (porting meaning to move properties, often upsizing, and taking the mortgage with you).

getmore4less

you don't need to do anything with the mortgage.

just go onto the followon rate.

price to sell,

ACG

Stick to the follow on rate - the last thing you want is to tie in to a new deal and then find you can not port the mortgage over or find its a poor deal for the new property.

lee111s

Follow on rate, or remortgage to a low rate tracker if you can (these often have no ERC's and you can close them whenever) but be mindful of fees.

Rollinghills

Stay on the follow on rate or ask your lender if there is a better rate that wouldn't incur fees or early repayment charges, otherwise a lower interest rate will not compensate for the fees in a short time frame

amnblog

Do nothing before your purchase.


Any other suggestion is nonsense.

ophelia0401

Thanks for all the suggestions. Just to clarify, once I sell the property I won't be getting another mortgage on another property - don't know if this affects the advice? Really grateful for all the suggestions - thank you!

amnblog

The views stands.


You are unlikely to benefit from a couple of months on a new product.

ACG

As per above.
Unless they can offer you a product with no fees at all its unlikely to make a positive difference by taking out a new deal for the sake of 3-4 months.

Even if they can, the amount saved will probably be negligible in the grand scheme of things.

Jhoney_2

Resurrecting this thread as similar situation.

Fixed term expires end of April, SVR 4.74 so thinking of taking a tracker whilst I prepare and market my home for sale.

My market can be a bit slow at this time of year and I need to fit sale around school so need a good rate, flexibility and ability to move without penalty when the time comes. My current situation means I would not pass affordability with a New Lender.

My current Lender offers 1.99% 2 yr tracker, no fees + 250 cashback. No ERC and exit fee £225.

Q1 Does a tracker port or do you have to pay it off? Will this trigger affordability check with same (current) Lender for purchase?

Q2 My current rate 4.99% ports, but mortgage is potentially more than I need, so should I do that and then change to a flexible offset so in effect having enough equity savings in offset to pay required mtg off completely plus savings for any works etc at new property?

Doing nothing will be too costly.

Thanks for reading - any suggestions appreciated.