Mortgage dilemna

Diamond2

Hi there

Any advise would be much appreciated please.

I am a accidental landlord and have been so for the past 7 years. The property is now up for sale. 

At the end of April my current fixed BTL mortgage (currently £555 per month and £242k interest only), comes to an end, raising my mortgage to £1186 per month on the variable rate. A new mortgage transfer with the same lender would be cheaper, but it has a redemption charge at £5500k during the 1st year, (and £484 monthly payments). 

Can you advise the best thing to do while waiting to sell, bearing in mind the current BTL fixed rate ends in just over 1month.

I also currently have a small (£27k) mortgage on my current flat. 

Would it be worth selling/renting out ny flat and moving back to the rental proprty????

I look forward to hearing from you.

dimbo61

I think the phrase is I decided to Rent out my property 7 years ago !
It's now up for sale.
I will have to pay the SVR rate and hope to sell ASAP as it would be unwise to take out a new deal.
We know nothing about either of your properties so can't tell you where to live.

Snookie12cat

You can move to a ERC free tracker? That way you can sell with no penalty. You can get lower rate and will only probably have to part with the product fee. 

K_S

@diamond2 If you're looking to sell soon, then the best option may be to remortgage to a low/no-fee low/no-ERC tracker/discount product. You also have a few lenders that offer fixed-rate ERC free BTL products, though they come with a product fee.

If your rate is ending in month, I would recommend getting in touch with a broker sooner rather than later. The MSE guide here tells you how to do that https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!