To fix or not to fix?

ZOZO93

Hi All,

I am currently going through the joyous process of re-fixing my mortgage rate. I am trying to work out if I should go with a 2 or 5 year fix.

I am tempted to opt for a 5 year fix as it feels like interest rates cannot get any lower but I am looking to move to a larger property within the next 18-24 months. 

I have around 70k left on my current mortgage. When we move house my partner will be added to the mortgage, they will be a first time buyer. 

My question is how do I find out how likely my current mortgage would be able to be portable and if not is there an easy way to get a feel for what the early repayment fees would be? I can dig out my existing mortgage terms but would imagine these would change once I switch the rate.

I currently have a non advisory mortgage appointment booked next week where I'd have to make the decision so I'd like to have my metaphorical ducks in a row before going into the appointment.

csgohan4

if your moving in 2 years, it would be better to get a 2 year deal, getting a 5 year deal does not make sense unless you don't mind the ERC

Porting a mortgage is lender's discretion, they don't have to even if they offer it. 

Ask your current lender regarding portability 

amnblog

I currently have a non advisory mortgage appointment booked next week

Sounds like a major waste of everyone's time

Porting a mortgage is lender's discretion, they don't have to even if they offer it. 

Mortgages are never portable. The portability feature, where offered, applies to the mortgage rate.

What does this mean?

If the Lender is satisfied with your financial position and the new security property, they will let you continue your mortgage product by applying it to the new mortgage on the new property. You therefore do not incur any early redemption penalty. If your Lender is not prepared to offer lending against the new property for any reason you cannot port your product and you will pay the early redemption penalty.

Hence the suggestion that a two year rate may be more suitable if you intend to move makes more sense. The shorten term rate offers a shorter early redemption penalty window and therefore increased flexibility.

getmore4less

Which lender?
Do they have any ERC free products?

Will you need additional borrowing for the move.?

ZOZO93

Thanks for the responses, as an update I went for a 3 year fix. The main trigger for this is because we will be looking at upsizing for our next mortgage which will increase the amount we need to borrow and it appears this makes it more difficult to port any existing borrowing.