Advice Please

sirdigbychickencaesar

We sold our house a couple of months ago, a couple of weeks ago the chain below broke up. Our buyer has had to put their house back on the market, but at the moment we are leaving ours as sold as we are not in too much of a hurry as the house we were buying fell through too! Anyway.....we had sorted out a new mortgage deal for the new house on a fixed rate tracker which obviously would have started when we moved in. (we are borrowing the same amount as our present mortgage)
On our present house, our 2 year fixed rate has just expired, so now we are paying about 200 pounds more each month.
The problem we have is, we don't know whether we can get a better mortgage deal elsewhere but get tied in and then be charged a fee when we do eventually move and start the other mortgage. But it could be 6 months or more before we eventually move and we don't want to keep forking out the extra money.

danm

you should almost certainly be able to get a better deal for a small fee with no-tie in.

for example. Im currently with alliance and leicester and may delay remortgaging, but for different reasons.

About to revert to SVR, payments would increase by about £200
my preferred deal would be a 2 yr tracker BBR+0.04, £599 fee, 2 year tie in
I can instead chose BBR+1.08, £149 fee, no tie in. probably still pay about £100 more p/m but can then switch to a cheaper deal when situation sorted.

Rough maths would suggest that you may be slighlty better off looking at somthing like this as a comprimise. Will depend on whether you lender will chnage you a 'switching' fee again in 6 months time

sammyjammy

If you're planning on moving to another house where you won't need to borrow more money just make sure the new mortgage is portable, that way you can still go for a fixed rate or a tracker with a tie in if that is what you want, make sure you explain the situation to the lender.

Sam