Switch or SVR

Willsie01

As we are about to go on the market in order to downsize I'm not sure what to do about our mortgage. It is relatively small compared to house equity and we intend to pay it off after selling, but don't have means to settle it before. It'll take time to sell and our current mortgage deal is expiring, so should we consider the switch options we have been offered or just pay the higher instalment of a SVR? I'm not sure how to assess the costs of the relative options. Take a fixed deal and pay the ERC when sold doesn't seem to make sense. My gut feeling is that paying the extra £70 a month until we sell makes more sense then even the deal with the lowest ERC. It would have to take us 10 months to sell the house before the two options reached the point where it would have been better to accept a switching option. Am I thinking about this in the right way?

kingstreet

Check to see if your lender has any ERC-free tracker products you could use in the interim.

getmore4less

Will you be mortgage free with the new property?

Could look at fix and port then overpay if no suitable ERC free product

Willsie01

kingstreet said:

Check to see if your lender has any ERC-free tracker products you could use in the interim.

The mortgage product I was thinking of going with isn't described as a tracker but as a 1.25% discount off SVR so I suppose that is one. I've never had a tracker before. This one has a floor rate of 2.74%.

Thrugelmir

Tracker is simply a product with a floating variable rate. SVR is likely to increase with changes to BOE base rate.