Avoiding SVR - Fixed term coming to an end but thinking of selling. Renew mortgage or not?

The_Fat_el_Hombre

When I got a mortgage I got a fixed rate mortgage for 2 years, when the 2 years was nearly up in order to avoid reverting to the standard variable rate I renewed (fixed) for another 2 years (free of charge online if I remember rightly). That 2 years is nearly up but I am considering selling my property. If I renew for another 2 years (on fixed or variable) if I sell my property within that 2 years will I pay some sort of penalty or will it just be closed with the sale?

[Deleted User]

Svr would probably be quite high. Is a tracker an option? Would give you the flexibility to come out penalty free with keeping the main rate low (for the time being anyway)

The_Fat_el_Hombre

Deleted_User wrote: »

Svr would probably be quite high. Is a tracker an option? Would give you the flexibility to come out penalty free with keeping the main rate low (for the time being anyway)

Hi thanks for the response. Yes it definitely would. I've had a mortgage for 4 years and only had a fixed rate in that time, I thought that trackers ran for x amount of years and you were signed up for that amount of years despite the interest rate going up or down (in other words, you'd still have to pay a fee if you moved)? But after your response I'm assuming it is just set at a certain rate above the BOE interest rate and you are flexible to move house/cancel the mortgage in that time without penalty Is that correct?

Thanks again

getmore4less

which lender?

[Deleted User]

The_Fat_el_Hombre wrote: »

Hi thanks for the response. Yes it definitely would. I've had a mortgage for 4 years and only had a fixed rate in that time, I thought that trackers ran for x amount of years and you were signed up for that amount of years despite the interest rate going up or down (in other words, you'd still have to pay a fee if you moved)? But after your response I'm assuming it is just set at a certain rate above the BOE interest rate and you are flexible to move house/cancel the mortgage in that time without penalty Is that correct?

Thanks again

Same as the answer to every mortgage question on here...it depends on the lender.

Its not common to have free on entry and exit as otherwise they risk not making any money off you (although i think nationwide may have one with no set up fee and no exit fee). Not all ERC's are made equally though so there are some that have no fees to set up and only 0.5% on exit (during product period). Others with no exit penalties but £500 to set it up.

Really depends on what lender you are with and the numbers you are looking at to see if it is going to be worth fiddling around to save being on the SVR. If the SVR costs £300 extra month and it takes you 3 months to decide to sell then a further 3 months to sell thats £1800 wasted there so you may have been better sitting on a product with no exit penalties
You can also get fixed rate products with no exit penalties

Id encourage you to just take some of your time to talk the numbers through with a broker. It could save you hundreds of pounds and unless your hourly rate is really high then its probably worth a bit of your time exploring all the options