Redeeming mortgage

gadget88

We would be £1900 to redeem the mortgage vs porting it. I did google it it reckons I’m better paying a new 5 year deal as we are due 3 interest rate spikes and chances of getting a good deal in 2 years are quite low? Is that the general feeling out there?

silvercar

Assume you are moving, if you are talking of porting a mortgage.

You need to compare all the costs, including whether a new deal elsewhere comes with free valuation or legals and whether your current provider will offer this.

I wouldn't even begin to forecast how the land will lie in 2 years time, other than to say that 5 year deals will generally incorporate what the view of the market on rates over the next 5 years will be. So it may offer you some assurance, if affordability may be a struggle.

starboyx

https://forums.moneysavingexpert.com/discussion/6679310/redeeming-mortgage

It really depends on the numbers. I wouldn’t base it purely on expectations of future rate rises/falls. Compare the £1,900 redemption fee plus the cost of a new deal against the porting option, including the rate and any fees. If the difference is small, flexibility may be worth more than trying to predict rates.

gadget88

https://forums.moneysavingexpert.com/discussion/comment/82097994#Comment_82097994

£15 per month vs £1900 upfront and the £15 more I think

poseidon1

So just to be clear OP and for the benefit of those responding, your present query is evidence that despite your considerable problems in selling your house and finding a suitable replacement in Scotland, you are now fast approaching completion of your house move?

If so congratulations, your past posts suggests this has been a very arduous undertaking.

gadget88

https://forums.moneysavingexpert.com/discussion/comment/82098044#Comment_82098044

No still early on it and need to sell mine. Yes it’s been around 2-3 years trying to move.

ACG

Who says 3 rate rises in 2 years?

If I was a betting man I would say chances of 1 rate rise is slim, 2 is almost zero - but I am no economist.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82098158#Comment_82098158

Then porting is not a consideration at all at this time.

Therefore curious why you are contemplating a £1,900 early redemption charge unless you can justify the charge by achieving meaningful monthly savings on a new fix.

As for the prognosis for the trajectory of UK mortgage rates in the next 5 years, not even a macro economic specialist would care to hazard a guess.

The big uncertainty right now is if the Straits of Homuz remain closed for an appreciable period as a result of the off/on conflict into 2027, it is considered this could have a particularly severe effect on the UK economy potentially pushing UK consumer inflation above 6%.

With limited tools at the Bank of England's disposal to curb such a potential inflationary spiral, anybody's guess what might happen to bank base rates and mortgage rates as a result.

debh111

Made last payment to mortgage is there anything I need to do as in tell land registry or does the lender only need to inform the them

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82108051#Comment_82108051

welcome to the forum. You would be better starting your own thread, but it’s a simple query.

Your mortgage lender should tell land registry. Worth using the land registry’s free property alert service which tells you via email if any changes have been applied to your deeds. Two benefits, you should get a notification when your lender removes their charge and if anyone tries to put a charge on (or any other change) in the future, you will be alerted.