Remortgaging to Move Home

SenseandSensibility

Hi, We will be coming to the end of our five year fixed-term with Santander in January 2026. We are considering remortgaging to borrow more in order to pay off our HTB loan (worth 20% of the house value) and to upsize from our current property.

If we were to remortgage six months before our term is due to end, would we be liable for paying ERC? Equally, if we get a remortgage deal before the fixed term ends, but in that time our house doesn’t sell/the buying process is still ongoing when our fixed term comes to and end, what will happen, will we end up on Santander’s SVR?

I’m sorry for the number of questions, but the process was a lot easier when we bought our first home, because it was a new build and we applied for a help to buy mortgage, so didn’t have to worry about stamp duty, estate agents and everything else to consider. 

Hoenir

Why do you want to remortgage before the end of the fixed term period. What do you hope to achieve by doing so. 

SenseandSensibility

Hoenir said:

Why do you want to remortgage before the end of the fixed term period. What do you hope to achieve by doing so. 

We’re concerned that remortgaging in January, when the housing market is at its quietest, will mean it takes longer for us to sell and find a house that suits our needs. Having never sold/bought before, we also don’t know where in the process we should start looking at remortgaging to borrow more- should we put our house on the market first? We’re completely new to the process.