5 year fixed ended. Unsure what to do if we want to move soonish..

joeyboy

Hi folks, 

Honestly at the end of the day this is probably just a gamble ill have to take but perhaps there's some advice to consider.. 

So we had a 5 year fix at around 3% and it ended a month ago. I had let it lapse partly because it was looking like the variable was going to be similar and also we where looking to move this year. With how inflation looks to be going I'm somewhat uneasy about taking on the burden of a bigger mortgage. Obviously we'll need to think hard. 

My concern now is I've had 2 letters upping the rate in a month and the way the economy etc is going it looks like everything is going up. The rate is now 4.24% which has meant £60 a month more, affordable but obviously less is nice.

I'm musing on whether it's worth fixing it for 2-5 years with the same lender (or more likely another as mine is not that competitive looking around) and risking the fact..

1) I might have to pay an early leaving fee to leave if when I try and port the mortgage to buy a new property the lender won't let me borrow the additional I need. (I think this is unlikely in my situation)

2) I get the current amount fixed at the best rate I can find. But when I try and port they're actually not very competitive on the additional funds so my deal isn't as good as if I had the freedom to get an entirely new mortgage. Again I guess it would be paying an early leaving fee in that case. 

My remortgage would be at a LTV of 66-70%. 

Honestly this is probably more of a sounding board but if anyone has views it might be helpful.

Thrugelmir

Can I ask who your current lender is. Have you not considered remortaging elsewhere to lock in to a better rate? 

joeyboy

Thrugelmir said:

Can I ask who your current lender is. Have you not considered remortaging elsewhere to lock in to a better rate? 

Hi so current is bank of ireland UK. 

If I was to remortgage now it would certainly be with someone else looking at rates. My concern was more if I lock into mortgage with bank X, if we did move, it turns out bank Y is now better and the early repayment charge makes it so we would have been better off sticking on our more expensive variable overall. 

housebuyer143

Why don't you fix on a tracker with no ERCs? That way you just pay it off when you move.