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Remortgage due with house on the market
GixxerDan
Posts: 18 Forumite
Hi,
My remortgage is due at the end of January, which i fixed a few months ago with my current bank incase rates went up again. Obviously rates have come down so I'm curious what the best way to go is given our house is currently on the market. Do I remortgage at the cheaper rate with current bank (not the best on the market- 4.93% vs 4.25%), go onto a tracker rate or remortgage with a suitable alternative elsewhere?
My worry is that if I stay with my current bank, the rates could be even more unfavourable on the new house whenever that happens (we are looking to upsize in value). Another consideration is that my mortgage is made up of 2 sub accounts. The larger portion is what's due, with the smaller (circa £7,700) running until 2028 so any move elsewhere would mean I'd incur roughly £311 in ERC to also move this smaller portion.
I'm not massively clued up with this kind of thing so if any further information is required in order to give advice please let me know!
Thank you
My remortgage is due at the end of January, which i fixed a few months ago with my current bank incase rates went up again. Obviously rates have come down so I'm curious what the best way to go is given our house is currently on the market. Do I remortgage at the cheaper rate with current bank (not the best on the market- 4.93% vs 4.25%), go onto a tracker rate or remortgage with a suitable alternative elsewhere?
My worry is that if I stay with my current bank, the rates could be even more unfavourable on the new house whenever that happens (we are looking to upsize in value). Another consideration is that my mortgage is made up of 2 sub accounts. The larger portion is what's due, with the smaller (circa £7,700) running until 2028 so any move elsewhere would mean I'd incur roughly £311 in ERC to also move this smaller portion.
I'm not massively clued up with this kind of thing so if any further information is required in order to give advice please let me know!
Thank you
0
Comments
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Remaining with your existing lender is not a remortgage. You are in effect selecting a new loan product.
When interest rates are in a state of flux. The best choice is the one that's right for you at the time.
From a personal perspective I'd lock in with the current lender on a year rate. Then look to port to the new property with addtional new borrowing. A dramatic fall in mortgage interest rates is unlikely in the short term. Also a risk that they might well edge higher. At least then you've budgetry certainty for a decent period of time.1 -
Bumped for hopefully more views!0
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..and your Lender is? and your balance is?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Bumped in the hope of more opinions!0
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Telling us the Lender will help you with opinionsGixxerDan said:Bumped in the hope of more opinions!I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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