What to do at the end of a fixed term

SR1

We are thinking of moving and increasing our mortgage quit a bit, I have been looking at figures and it gives me 40 products to chose from. On my current rate I'm on a lifetime tracker .95 + bbb r so 1.45 currently
I would take this with me but any new rates would be in the region of 1.95 for two years then 3.45+bbb r
Do people really pay this rate which is quit a jump after the fixed term, or do they just remortgage?
Would an underwriter work out your affordability based on such higher rates ?

dimbo61

You would LIKE to port your current deal at 0.95%+ Bank of England base rate.
That does not mean you CAN Port your current deal !
So you are thinking of moving and taking on a MUCH bigger mortgage so why not a Long term fix to protect yourself and the family?

SR1

Yes I am able to port, yes I am confused I don't like the idea of being fixed in for too long but will interest rates be over 4%in a couple of years , I don't think so it's going to have to be a really steady rise i think

benten69

After the fixed term deal is up you can port over to a new mortgage with zero penalties/less penalties. There are usually high penalties if you move early though (during the fixed term), but each lender will have their own T&C's.

If you get a broker to do it for you, then some of them will offer to contact you 3-4 months before your fixed term is due to end in order to secure you another new mortgage which is at a better rate than the 3.45% you mention above.

So yes, people do just jump from mortgage to mortgage every few years in order to keep the best deal.