Planning to move early next year, remortgage now?

Jayjoegray42

What to do. I've just completed an IVA, thankfully my credit rating is excellent. My current mortgage has a very poor rate, with the cost soaring with recent interest rate hikes. I can easily remortgage now I'm out of the IVA and get a much better rate, but I'm planning to move early next year (as soon as I've saved enough for stamp duty/conveyancing costs etc) so don't want to be tied to a new mortgage with early repayment costs, which most good value fixed rate mortgages have. All bad timing, I know, with interest rates looking like they'll get up to around 5% by the time I'm ready to move! I could move now and use some of the equity in my current property for stamp duty, this would protect me against upcoming rate rises but would mean a lower deposit for my next property (around 15% rather than 20%), meaning a worse mortgage rate and borrowing more! Any suggestions for the way forward would be much appreciated!

K_S

@jayjoegray42 Setting aside the issue of your recently satisfied IVA (which may have an impact on your options depending on how long ago it was started and satisfied, along with the contents of your credit report), if you're planning to move early in the next year, which is barely a few months away, perhaps you might be best off looking for a low/no-fee low/no-ERC tracker/discount product that will allow you to pay it off without too much of a penalty when it comes to a move.

Alternatively, if you don't think you'll need to maximise borrowing for your move next year, then it may be worth considering getting a fix with the aim of using porting+additional borrowing for your move.

And to be honest, rates aren't likely to be very different between 80% LTV and 85% LTV, at lot of lenders don't even have an 80% LTV band, just 75% and then 85%.

Jayjoegray42 said:

What to do. I've just completed an IVA, thankfully my credit rating is excellent. My current mortgage has a very poor rate, with the cost soaring with recent interest rate hikes. I can easily remortgage now I'm out of the IVA and get a much better rate, but I'm planning to move early next year (as soon as I've saved enough for stamp duty/conveyancing costs etc) so don't want to be tied to a new mortgage with early repayment costs, which most good value fixed rate mortgages have. All bad timing, I know, with interest rates looking like they'll get up to around 5% by the time I'm ready to move! I could move now and use some of the equity in my current property for stamp duty, this would protect me against upcoming rate rises but would mean a lower deposit for my next property (around 15% rather than 20%), meaning a worse mortgage rate and borrowing more! Any suggestions for the way forward would be much appreciated!