Remortage Due. Can I port mortgage if Downsizing.

Okydoky25

My house is currently up for sale. No bites yet. My Mortgage is coming to an end and we have just had the re mortgage offer to start in May. Its a good deal. I cant find better however we are hoping to move and with that Downsize. Is it possible to port the mortgage if we will be borrowing less or will we be looking at Early redemption fees and a new mortgage offer if we were locked in for another 2 years? If we move to a Tracker we will be paying a lot more each month and its anyone's guess when we could sell. 

Cscott139

which lender are you with?

Thrugelmir

Any particular reason for downsizing? Lenders have a duty of care to their customers. Well worth speaking to them directly. 

Okydoky25

Cscott139 said:

which lender are you with?

HSBC

Okydoky25

Thrugelmir said:

Any particular reason for downsizing? Lenders have a duty of care to their customers. Well worth speaking to them directly. 

Currently live in a large house which a lot of equity. We are looking to move location and luckily where we want to move to housing is cheaper anyway. Still a 4 bed as we have now just not so big and less land. 

dimbo61

Why would you sign up to a new deal when you might be moving.
Wait till you sell and then see how much equity you have.
You can then search the market or employ a broker to find you a new deal and lender.

kingstreet

Yes you can port and reduce the mortgage. However, a proportionate ERC will be charged on the amount of the reduction.

Okydoky25

dimbo61 said:

Why would you sign up to a new deal when you might be moving.
Wait till you sell and then see how much equity you have.
You can then search the market or employ a broker to find you a new deal and lender.

Because the house might not sell that quickly. Current market seems v slow around here and if I come off my current fixed deal we will be paying £400 extra a month for however long a piece of string is until we sell. 

Thrugelmir

Okydoky25 said:

dimbo61 said:

Why would you sign up to a new deal when you might be moving.
Wait till you sell and then see how much equity you have.
You can then search the market or employ a broker to find you a new deal and lender.

Because the house might not sell that quickly. Current market seems v slow around here and if I come off my current fixed deal we will be paying £400 extra a month for however long a piece of string is until we sell. 

Might as well lock in and overpay the mortgage by as much as you able.