End of fixed rate, but want to move

gclarke34

Hi,

I'm coming to the end of a 5 year fixed rate (2 months left). However, I'm also looking to move house, for which I'd need to borrow more. I plan to have my current place up for sale within the next month and will start viewing properties as soon as it's appropriate.

Talking to my mortgage provider, it seems I have two options available:

1. Let my current mortgage go onto SVR (a rate increase of around 1%) and then when I move I have the freedom to look at any provider on my new mortgage.

2. Secure another fixed rate now, then port it to the new property and get a top-up product on the extra amount.

My current provider does not offer trackers or discount rate products.

I'm struggling to decide which option is better. I feel the option 1 gives me more freedom, but if it takes a long time to move, I will have been paying the higher SVR rate for all that time when it could have been fixed at a lower rate.

Had anyone been in the situation? Any advice?

Thanks

G_M

If you go for 2), what guarantee do you have that


* they'll still allow you to port at that time (policies change....)
* they'll lend you the additional amount you need
* they'll accept the property you want to port to
* the rate you fix at now won't be worse than available rates at the point you port

Lucius45

I was in a very similar situation last year, but sort of gambled on the fact that properties in the south east go like hot cakes. If you're confident you can sell relatively soon it might be worth taking the hit short for a couple of months?

Having said that, what have you got to lose with option 2? Presumably, either you will:
a) Move to a more expensive property, and take out a new product on the extra portion
b) Not move, so you'll stay on your fixed rate
c) Move to a cheaper property, depending on how much less it is you might be able to repay without an early redemption penalty
d) Emigrate in which case go with option 1 :rotfl:

Ames1983

I’m in the same situation. Put our home up for sale in sept, fixed rate ended at end of October so I’ve moved onto their standard variable in the interim. We are in the process of selling/purchasing and have a new mortgage agreed.
I decided to test the waters for a couple of months on SVR and luckily we made a sale in that timeframe.
With our new house our monthly payments will be more, and so I’m thinking of this slightly higher monthly payment currently as practise for when new mortgage kicks in :-)