Remortgage advise

Paris1256

Hello newbie here.

Myself and my wife’s fixed deal ends shortly, and the standard rate is 3.99 which we think is excessive, we don’t owe a huge amount currently (£45000 on a property valued at £340000) but are looking to upsize to a bigger property (up to the £500k mark) when we can find what we want (been looking 11mths).
The conundrum we are in is that we want a mortgage that we could come out of to a new one with little or no penalties if we find somewhere, furthermore we don’t want to have a whacking great big set up fee, but the variable rate does give us the freedom to move easily is suppose?

what do you suggest???

Thanks

kingstreet

Fee-free tracker product with no ERCs.

Then, when you want to move, it has cost you nothing to get in and out.

dimbo61

So look on your current lenders website for new deals for existing customers !
See if they have any fee free tracker deals.
Or you could overpay your current mortgage Big style.
Just imagine you have a £205,000 mortgage over say 25 years ( consider your state retirement age ) at 2 percent !
This works out about £870 a month so make your mortgage payment £900 a month to pay down you debt quickly and build up more equity

Paris1256

Thanks I will see what my lender does. Have a great day

astal

Early Repayment Charges are based on the interest that the lender will lose if the borrower breaks the contract. So, even though the best option is a no ERC tracker, the remaining options wouldn't incur high costs, as interest won't be as significant as they are in the first years of the mortgage.