Fixed rate finishing up end of January but want to move

lm1981

Hi,
my fixed rate finishes end of January, I owe 79k and house is worth approx 215k.

we are hoping to try and move next year but this will be dependent on jobs and also just how things progress with RE to economic climate etc. My guess is it would be towards summer time.

we currently pay £395 a month with 21 years remaining. If I do nothing it goes up to around £500 when fixed rate ends.

I am open to reducing the term and doing a fixed rate and over paying (about 1k a month till I reach the limit for over payments though once out of the fixed rate I think I can overpay as much as I like?)

I want do not want to pay a fee for coming out of a fixed rate if we do end up moving , I know some mortgages are portable but have read this isn’t always an option)....any feedback most welcome 

[Deleted User]

If you don't want to pay an ERC, then your options are either the SVR or a portable mortgage 

getmore4less

That's 2.2% going up to 4.8%

Extra interest for a year on the higher rate £2,100.

Which lender?
They may have a no ERC option. 
Would you consider porting and top up when moving ?

MFWannabe

How certain are you that you will move? 

Does current provider let you port your mortgage? 

What are the interest rates and terms on fixed rates with current lender? 

K_S

@lm1981 You have a few options -

1. The least hassle would be doing a product switch to a no-fee no-ERC option with your current lender, but only very few lenders offer such products so yours might not. And then when it's time to move you won't need to worry about ERC etc.

2. Consider remortgaging to another lender to a no-fee no-ERC option.

3. Switch or remortgage to a short fix offering porting and hope you are able to port it to your new property. Porting is one of those things for which each lender has their own quirks and a few things need to fall in place for clients to be able to port efficiently.

4. Fall on to SVR and maintain as is till the move. Overpay with spare funds if appropriate.

On the plus side, it's a relatively small mortgage so with any option you pick the costs aren't likely to be huge.

LRmortgage

Need to know who your current lender is to give an answer to this question. 

lm1981

Thank you , current lender is YBS

Thrugelmir

What is your lender offering you when your current product expires ? 

lm1981

They are offering a 4.49% variable from feb 2021

MFWannabe

What fixed rate deals do they offer? 

What would be the ERC if you did move in that time (if any) or would they let you port the mortgage? What would be the terms to port? 

IAMIAM

Why not just go onto a no ERC tracker?