House on market, do i default/ remortgage/ mortgage to cover new house

slc82

Hi,
We've had our house on the market and it's a first time buyers type of house. I can't see us selling now until after Brexit.
Our fixed term mortgage finishes on 30 sept. I'm not sure which option is the best...
1. to let the fixed term lapse and pay the increased % which can fluctuate
2. get a remortgage on our house fixed (but then pay to get a fixed term and maybe pay early redemption should we sell and move)
3. get a mortgage to cover what we'd need to buy another house ready for when we sell (and pay the interest on a larger amount with a huge chunk sitting in a bank account somewhere waiting for us to sell)

When we looked into how much we could have with a porting of our current mortgage compared to getting a new mortgage the porting one was 40k less than the new mortgage so I don't think its right thinking we could just get another on our house and extend/port it later on.

I'm not sure i've written this clearly, maybe there is another option I've not thought of.

What do you recommend?
Thanks

sal_III

Unless you are downsizing / moving to a cheaper area AND have very high % equity in your current property, I don't see how you can do 3)

If the property is on the market and you are actively trying to sell there is no point in getting a new fix unless there is no ERC, but i don't think such product exists.

Your best bet is to lapse on the variable rate which should be around 4% for the intervening months until the sale. It will most likely be much cheaper than getting a new fix + ERC

getmore4less

Most that come up on here with the "why won't my house sell" banner there are plenty of buyers for correctly priced properties.

[Deleted User]

2.a. Remortgage to a deal that has no penalties to come out when you sell the house. Usually a tracker but also perhaps Coventry and the fixed rate with no ERC deals they do

amnblog

1. You don’t need to fix the moment the current rate lapses. You could fix later if selling proves to be an issue.

2. As mentioned above some lenders will offer remortgage products without a redemption penalty (although an arrangement fee may make this a poor option)

3. Don’t confuse yourself here. Portability is about the ability to port a product, the mortgage still has to be underwritten for the new property when you make the new purchase. There is unlikely to be any value in borrowing extra today on your current home.

Thrugelmir

slc82 wrote: »

We've had our house on the market and it's a first time buyers type of house. I can't see us selling now until after Brexit.

Market tends to deaden November \ December in any event.

amnblog

The market has been dead since last November/December