Buying new home before selling current one

Anand

I am currently living in a mortgaged house with about £100k outstanding. The fixed period come to an end in July where it then will move to the SVR of 7% vs. 1.8% that it's currently on.

We've put in an offer on a place that we intent to buy outright. We did this to secure the property and avoid being in chain. The intention is to then sell the current home and pay off the outstanding £100k

The issue is that I still need the £100K loan, but obviously don't want to be paying the 7% types rates until sell the home.

My thought was that I move onto a tracker mortgage if offered by the current lender, but it's unclear if they will offer one nearer the time.

I ideally don't want to be taking out a new mortgage on the new property as cannot be bothered to go through all the checks that might slow down the process.

Any recommendations for options ?

El_Torro

I don't see why your current lender wouldn't make you a remortage offer. Might not be all that competitive, but should be cheaper than going on the 7% SVR. Also a lot less hassle than remortgaging to a new lender for a short period of time.

Your current lender should let you know your options a few weeks before the mortgage term ends. If they don't ring them and ask for it.

Anand

Ideally don’t want to end up on a fixed term mortgage and pay an erc when I sell the property the property few months after.

My hope is that they will offer a tracker without an erc, but don’t know if they will offer one at this point in time.

Looking for backups or alternatives.

ACG

Put your house up for sale in March/April and advise the buyers you cant complete until 1st August.

Any buyers mortgage offer will normally be valid for 6 months so they should have everything ready to complete the day your fixed rate ends.