Moving house with 2 months left on fixed rate!

CallumV

Hi all,

I’m after some advice. I’m in the process of moving house and I expect to complete the sale/purchase with just 2 months left on my 5 year fixed rate mortgage with YBS but they’re quoting £3600 to end the mortgage early!

We need to borrow more money to purchase the new house but I’m not sure what is the best thing to do so I don’t have to pay such high fees. We have a mortgage in principle for more than the purchase price we agreed so we’ll be ok in terms of getting the mortgage.

Does anyone know the best thing to do in this situation? Could I get a variable rate mortgage on the extra money I need to borrow for just two months until my fixed rate ends then take out a new mortgage to cover the lot?

Thanks in advance for your help, Callum

ACG

You could port your current Mortgage over to the new property then remortgage it in 2 months.

CallumV

Cheers, from reading about porting on this site I was of the impression that if I ported it would result in me having two mortgages because I would be borrowing more money

Thrugelmir

One mortgage, with two sub accounts (loans). The mortgage is the legal charge placed on the property to secure the debt.

ACG

You would have 2 parts to the Mortgage both with YBS.
IF they do not have any products without an early repayment charge, you may need to stick with them for 2 years but at least ti avoids the £3,600 ERC. It is also probably cheaper than a bridging loan.

CallumV

Thanks for your responses, I!!!8217;ve got an appointment with YBS today to discuss it, cheers