Mortgage expiring whilst moving house

GSDog89

Morning.

Our 2 year fixed mortgage is ending in June and we are about to put our house on the market to relocate.  

How does it work in this scenario?  We obviously don’t want to take out another fixed rate mortgage if we are selling the property and could be liable for cancellation fees.  Can the mortgage be transferred to the new property when we find it, or would we need to setup a new mortgage?  

Your advice would be appreciated.

davidmcn

In practice, any mortgage for a different property is a new one, though depending on the product you might be able to "port" the product across to avoid repayment fees. Bear in mind though the risk that your existing lender doesn't want to offer a mortgage on the new property (because they don't like the property, or your affordability, or have simply stopped new lending). Otherwise you either let it run on to the standard mortgage rate or find a product which doesn't have an early redemption penalty. Will probably have to stay with your current lender though, I don't think new lenders are interested if you're about to sell. 

flashg67

Your current mortgage will likely roll over to your lender's standard rate until the sale goes through, so your payments will be higher for a while. This is probably what I'd do in case my lender wouldn't lend on a new property. It's also a chance to seek out an even better deal on a new mortgage.
If you do remortgage before you move, I'd at least check whether the mortgage is portable - not all are - my last one with Lloyds wasn't