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Mortgage dilemna

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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.

Comments

  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
  • 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
    K_S Posts: 6,875 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 30 March 2022 at 7:50AM
    @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!

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

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