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To go back to SVR, or not?
bobski_111
Posts: 14 Forumite
Hello Moneysavers!
Our fixed-interest period on our mortgage is coming to an end, so we will end up back on the lender's Standard Variable Rate.
Normally I'd just find a new deal no problem.
But, we are looking to move across the country this summer for work reasons, and expect the move to be permanent. So later this year we will be selling, probably in about six months or so but who knows how long it'll take. We're not keen to let the current property - the yield would be fairly low, particularly as we'd not be in a position to do any management ourselves so'd end up paying ludicrous fees plus VAT - but it's not out of the question this could end up happening.
What's our best option - remortgage now on the basis that whatever deal we get will be portable to a new property and we'll save a significant amount on interest in the meantime, or wait until we have a definite new property and get the best possible deal for that?
Our current LTV is very low (55k outstanding on a property that will sell for £400k+) and we are likely to increase the loan size for the new property, but probably not so much that we'd end up outside of the 50% LTV bracket. Our incomes will also change a bit after the move (main income will go up a bit, which is the main affordability criterion... second income will probably become a lot more uncertain as only one of the jobs is likely to move with us)
Thanks in advance for your thoughts!
Our fixed-interest period on our mortgage is coming to an end, so we will end up back on the lender's Standard Variable Rate.
Normally I'd just find a new deal no problem.
But, we are looking to move across the country this summer for work reasons, and expect the move to be permanent. So later this year we will be selling, probably in about six months or so but who knows how long it'll take. We're not keen to let the current property - the yield would be fairly low, particularly as we'd not be in a position to do any management ourselves so'd end up paying ludicrous fees plus VAT - but it's not out of the question this could end up happening.
What's our best option - remortgage now on the basis that whatever deal we get will be portable to a new property and we'll save a significant amount on interest in the meantime, or wait until we have a definite new property and get the best possible deal for that?
Our current LTV is very low (55k outstanding on a property that will sell for £400k+) and we are likely to increase the loan size for the new property, but probably not so much that we'd end up outside of the 50% LTV bracket. Our incomes will also change a bit after the move (main income will go up a bit, which is the main affordability criterion... second income will probably become a lot more uncertain as only one of the jobs is likely to move with us)
Thanks in advance for your thoughts!
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Comments
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Depending on your lender, they may have an ERC free tracker product that you can move onto, this would give you flexibility when time comes to either port or clear mortgage and start again with another lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Thank LRmortgage. My existing lender doesn't have any ERC-free options, but I see from searching online that there are fee-free, ERC-free options out there. The interest rate is higher of course, but given the relatively low amount, 0.5% more interest is much less of a problem than £1,500 or so in fees (or the 3% more interest on the SVR).
Sounds a bit too good to be true given that I was steeling myself for lots of unavoidable costs. Are there any catches.....?0
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