Fixed rate coming to an end and may want to move soon

DennisTenus

Hi,

My 2 year fixed rate mortgage is coming to end at the end of the year so to avoid having to pay much higher rate I need to remortgage, however I don't want to go for another fixed rate because I want to move in the not so distant future (although not on the market yet) and will probably wait to see what happens post brexit.

I thought if I went for a variable rate I could remortgage without early settlement fees at any time, unlike a fixed rate deal, however every variable deal I look at says there is early settlement fees! Some of like 3%!

Trackers seems to be the same too. What am I missing here?

I assume I could do another fixed rate then port it to the new house if I move however thats reliant on that bank agreeing to lend me more money.... are most mortgage's portable?

Are there any other options?

Svenena

Nationwide has trackers with no ERC, so you can switch whenever. I haven't checked other companies, but there's at least one option for you.

DennisTenus

Svenena wrote: »

Nationwide has trackers with no ERC, so you can switch whenever. I haven't checked other companies, but there's at least one option for you.

Thanks, I'll check them out

muhandis

Might be worth talking to a broker? Plenty of free ones if that is what is stopping you from talking to one.

DennisTenus

muhandis wrote: »

Might be worth talking to a broker? Plenty of free ones if that is what is stopping you from talking to one.

Thought they all charged a fee?

muhandis

Nope, plenty that don't - L&C, Trussle, Habito, Mojo, etc.

Please see the MSE page here

DennisTenus wrote: »

Thought they all charged a fee?

DennisTenus

Thanks, so how do they make money? By getting a fee from the mortgage lender you go with?

DennisTenus

Also what I don't get is that I thought variable means a rate that can go up and down, this is detail from a Nationwide variable mortgage, sounds like a fixed one to me?! Or can that initial rate go and up down in the first 60 months?

Your rate of 2.14% will last for the first 60 months of your mortgage (the 'initial period'). After that, you'll switch to the lender's standard variable rate (SVR). For Nationwide Building Society that's 4.24%

muhandis

Yes, it's called a procuration fee around 0.3-0.35% of the mortgage amount if I'm not wrong. Differs ever so slightly from lender to lender. Usually more for BTL mortgages.

As a borrower, no difference in the rates though.

DennisTenus wrote: »

Thanks, so how do they make money? By getting a fee from the mortgage lender you go with?

muhandis

That looks like a 5 year fixed rate.

The Nationwide 2yr or 5yr tracker products might suit you. Most NW mortgages are portable however I would still advise you to consult with a broker. No point in remortgaging with Nationwide if other lenders might have suitable products at lower rates.

DennisTenus wrote: »

Also what I don't get is that I thought variable means a rate that can go up and down, this is detail from a Nationwide variable mortgage, sounds like a fixed one to me?! Or can that initial rate go and up down in the first 60 months?

DennisTenus

I found that searching on habito with variable selected.

I do have quite a bit of savings so looked at offset mortgages which don't seem to actually save that much interest, oddly. Just to see I put in 100K mortgage and 100K savings but you still pay interest??!