Advice on mortgages rates

Hannah_Lam

Hi

I'm a newbie here and I would like some advice on mortgages.
Basically I took out a 2 yrs fixed rate mortgage on my flat at the rate of 4.19% which is soon coming to an end this November. We are thinking of selling the property sometime next year or possibly in 2007 depending on our financial situation and I'm not sure what to do with my next mortgage. Should I stay with my current mortgage and do another fixed rate mortgage or transfer to another lender. Also should I choose a fixed rate or interest only mortgage as we are in the view to sell and I don't want to incur any penalities if I choose to sell before the term ends. However saying that I am attracted to the fixed rate mortgage as I am able to calculate how much to pay each month.

I would be most grateful if anyone can give me any helpful advice??


Many many thanks

Hannah

Slider

Hannah,

Are you intending to buy again when you sell, or leave the housing market? If buying again, check what rules the lenders are offering regarding porting the mortgage from one property to another. Also, if you have some idea of what your future borrowing requirements might be, see how the lender reacts to these.

Hannah_Lam

Hi Slider
Thanks for replying, in answer to your question I am in the viewing of buying as currently I own a 2 beds flat but would like to move up the property ladder in owning a house. My current mortgage is £115,000 but I guess my new mortgage will be around £146,000.

So I would really want to know what options are available for me .

Hannah

dwsjarcmcd

Hannah,
The main thing for you to ensure is that any future mortgage is portable, this is irrespective of whether you change lender or not. The vast majority are. Then look at the deals your current lender (who is?)will let you have and compare them with what is available elsewhere, taking into account any fees.
Whether your mortgage is interest only or capital and interest is not relevant to any exit charges. You've said your attracted to fixed rates so your next decision is how long to fix for? The difference in price between 2/5/10 year rates is not great, so I would base that decision on the length of time you want the peace of mind about payment stability. Hope this helps