port rate or pay ERC to have one mortgage rate?

devildolly5

Hi

Hope someone can give me some advice.

We are in the process of selling our house and buying another. We have a buyer in place on ours, and will hopefully have a property lined up soon to buy. We need to move so delaying is not really an option.

Here is my predicament. We need to borrow more for the new house (current £224000, need to borrow £305000) I have an AIP from our current lender up to £309000. My current mortgage fix ends in January. Until then, it will cost about £2500 to get out of the deal. We can port out mortgage.

It looks likely that we will find somewhere and need to apply for the mortgage before the deal ends.

We could port the current mortgage rate over to the new house and get another fix for the rest (probably a 5 year fix).

1. If we go for a 5 year fix for the new borrowing, am I correct in assuming the old rate that we are porting will revert to SVR in January. Can I get a new deal just for this part or will I have no choice but to go on SVR. Will there always be two staggered terms for each rate for the remainder of the mortgage?

2. Does it make sense to just paying the ERC to get out of the current deal and have just one mortgage rate fixed for 5 years - benefit is I coul dshop around rather than stick to my current inept (TSB) lender.

3. I could get a tracker for the new mortgage and then remortgage (without ERC) in January. Fees, and hassle put me off this option.

I hope I have understood how this all works. Looking for the most straight forward option if anyone has any advice.

Thanks

glentoran99

you can get a new deal for the part of the deal ending, what I did was take a shorter fix so both deals are ending around the same time, then then they can be tied both together in a new deal