To remortgage or not - want to move house...Advice needed?

laneycakes

Hi All

So this is the situation.

Last year I moved in with my other half. He has a mortgage on his house. He bought the property at the height of the housing boom - about 6 weeks before the market went through the floor. He paid £122,000 for his home, with around a £20,000 deposit - and a 40 year mortgage term :shocked: He currently owes around £97,000 on the mortgage.

We want to move house and buy together, But we're having trouble selling his place, especially as its only just heading back towards the level he paid for it (zoopla saying £117,000) and we need as close to the purchase price as poss for our next deposit. Other properties in the area have been on the market for a long time - sometimes a couple of years.

And so - the current 40 year mortgage (32 years left to go) has reverted to an SVR...and its pretty high (just under 5%) - so I think we should change the mortgage to get a better deal - and save more money for the next place. But as we want to move to a bigger, and thus more expensive place - is that sensible? i'm concerned about exit fees or penalties for leaving the new mortgage. Any advice? I hate the fact we're paying way over the odds (I know we could shave £100 a month minimum off the repayments and drop to a 25 year term by switching) but also cant really afford 3% penalties if we move house...

Thanks

libf

Most trackers don't have exit fees. Does his current mortgage provider offer any customer retention deals?

laneycakes

I'm not sure...Didn't realise there was such a thing- still learning about mortgages! I found my own when I bought my first house with a friend - but that was a SVR so none of this stuff crossed my mind! He's with Britannia.