Mortgage Dilemma

jetman_2

I would like to remortgage but plan to move from my present property in just over a year's time. How would a move impact any remortgaging decision I make?

I have considered the following options:

a) Tracker 1.9% above base rate (currently 4.69%), no fees, or redemeption penalties after 2 years - portable.

b) 2yr fixed at 4.74%, no fees, or redemption penalties after 2 years, portable.

c) 5yr fixed at 4.79%, fees of £424, not sure if portable yet.

Should I go for the fixed or tracker, taking into consideration I plan to sell my property in just over a year, and also interest rate fluctuations.

Thanks in advance for any advice!

herbiesjp

Make sure you look at the exit costs of those schemes - so while there may not be any redemption penalties, there may well be high deed release fees etc.

bockster

bear in mind, if you plan to borrow more money when you move, you will probably be tied to the same lender for the extra money due to the 'second charge' issue

homersimpson_3

wouldn't go for 5 year fixed because higher interest rate and huge fees. you could always look for another fixed rate after 2 year fixed rate expires. not much difference between tracker and 2 year fixed rate- depends on how much certainty you want and what you expect interest rates to do (no one really knows). you do need to check fees for releasing deeds (do vary alot).