Remortgaging and selling house advice please

flosset

Hello. I'm planning on putting my house up for sale and my fixed rate runs out in October. I don't think the house will sell by then or be completed if it did sell but won't know until I put it on the market.

Im currently on a fixed rate for 2 years which is 6.59%. The follow on rate is 7.74% life time tracker (BEBR +3.49%)

I am with Barclays and they offer to go on to a new rate online with no applications, documents, valuations etc which suits me as I don't want the hassle of doing a whole application whilst trying to sell house.

I know the ideal thing to do when selling is let it roll onto the follow rate so I don't have any ERC but I i have to factor in if the house takes a while to sell. I had the house valued re. Selling it I have approx. 50% LTV

My mortgage is in 2 parts as we had extra borrowing. There is approx 7.4k on the smaller part

When I looked at the rates they are offering me I noticed I can move onto 2 tracker rates that have no ERC. One is 2 year 4.39% tracker but with a £999 product fee and the other is 2 year 5.11% with £99 product fee. I would like to avoid a higher product fee

I also have the option of some fixed rates with a 1% ERC )

My thinking for the large part of the mortgage is to take the 5.11% with the £99 product fee and then if house sells no ERC? Not the best rate but lower than my current one and lowest product fee.
The 7.4k part of mortgage I was thinking of choosing a lower rate with a 1% ERC as this would be less than a £99 product fee? But it also states if you have more than 1 part you can switch them all at the same time and you only pay the higher fee so will need to get this clarified if I have to pay both.

I know I can port a mortgage if I move but I am planning to stay with family prior to purchasing another home so I can enter property market again with no chain.

Then I suppose if house doesn't sell I can look at a better rate as no ERC?

So my current monthly mortgage payment (both parts) is £932
If I leave it to go onto the follow rate it will be £1025
If I move onto the 5.11 tracker it'll be £806.59
Or I can take a 1 year 4.78% fixed rate with an 1% ERC and no product fee and pay £780 pm but have to pay around £1340 in ERC if house sells.

All this obviously depends on when my house sells but it's hard to estimate that

Would appreciate any advice. Sorry if the post doesn't make sense, I'm don't have much mortgage knowledge but trying to learn.

amnblog

Sounds like you have amassed quite a level of knowledge on Barclays products.

Provided you avoid products with three figure product fees going in and limit yourself to a maximum 1% charge coming out, your risk appears to be minimal.

RedFraggle

Just checking that you're 100% sure you want to remain with Barclays for the mortgage. The no ERC only applies if you swap to one of their own fixed products. 

flosset

amnblog said:

Sounds like you have amassed quite a level of knowledge on Barclays products.

Provided you avoid products with three figure product fees going in and limit yourself to a maximum 1% charge coming out, your risk appears to be minimal.

Hi thanks so much for the advice
Yeah spent some time researching Barclays because I want to stay with them to avoid a whole new mortgage application as if you switch online no paperwork or valuation etc required

Yes I have the option of the trackers with no ERC or a fixed with 1%. Do you have any advice re. whether a tracker mortgage is a wise move ATM?

flosset

RedFraggle said:

Just checking that you're 100% sure you want to remain with Barclays for the mortgage. The no ERC only applies if you swap to one of their own fixed products. 

Hi thanks so much for replying. Yes I want to stay with Barclays because if I switch online I won't have to do application process and provide all the documents, valuation etc as I want to get house on market ASAP

The no ERC appears to be offered on the two tracker deals I mentioned. I thought that might be best if I am planning to move