Moving house and reducing mortgage

Thompa25

Hi all,

I'm a bit of a predicament at the moment. Long story short I'm looking to sell my house and move. The house I'm looking at is substantially cheaper than the one I'm in.

So I've got my mortgage through accord mortgages, and the fixed term is up at the end of the month. I got from I think 1.8% Apr to there standard variable of 4.44%, so that increases my payment quite substantially. I can sign up to a new deal with a good rate, but I will have to pay 2.5% early repayment charge on the amount the mortgage is reduced by.

My house is worth in the region of 270k but let's go off the lowest I would take of 265k. I have an outstanding balance of 213k and the house im looking at is 140k.

I want to keep back about 10k for work on the house, so let's say 40k deposit and 100k mortgage so that would be a reduction by 113k which I would have to pay 10% on which would work out at around 2800.

Obviously my issue lies with how long my house is going to be on the market. Its been on under a week and we have had 2 viewings, 1 second viewing booked and 2 additional viewings. So do I take a risk and stay on the variable rate paying quite a bit more a month in the hope it sells quick, sign up to a new deal and port it over when sold and take the hit, or is there a mortgage I could take out at a good rate with no early repayment charges that cna be ported, because I don't think 2 mortgage applications in a short period would be a very good idea.

Thanks for anyone who has any advice.

AnotherJoe

My back of a fag packet says you'll pay an extra £250 a month in interest on SVR.
So, if your house sale took 6 months to go through, that's an extra £1500.
You say the ERC on the reduced portion after sale would be £2800. (is there a typo in there you talk about reduction of £113k which you'd have to pay 10% on did you mean 2.5%?)

So, I'd go for the SVR.

Thompa25

Yeah sorry typo on that one, should have really re read before posting