Monkey Boy:Yes I can tell you for sure that First Direct will only discuss an opt out if you have 6 months or less until the end of that term. The £1999 fee is for the better capped rate which they offer. That is their best one at present too

Sorry, i know i'm useless but what does that mean? Opt out of what?

Just dug out the mortgage paperwork and now in two minds on what to do.

I'm fixed at 4.15% and after that i revert to 1.99% over the BOE base rate. Might be worth seeing if they would lend more but at my current rate because i assume there wouldn't be any or at least many charges?! Does anybody know if that is possible?

Yes I can tell you for sure that First Direct will only discuss an opt out if you have 6 months or less until the end of that term. The £1999 fee is for the better capped rate which they offer. That is their best one at present too

Oops and when i say underwriter, i'm not a mortgage underwriter otherwise i wouldn't know the products/system well! Ha. Finance and leasing underwriter.

I haven't got anything agreed yet, but being an underwriter myself i know with the level of mortgage required with an additional person on the mortgage it shouldn't be an issue.

I think for the sake of £2k it's probably just worth settling off the mortgage and paying the charge, then taking out the new rate like you say.

Current mortgage was fixed for 5 years at 4.15% which at the time i thought wouldn't get any lower, but looks like you can get good 5 years fixed at about 3.8% now. I might try and call my current mortgage provider to see if they would match arate. Only trouble with one of the rates (First Direct) is that the set up fee is £1999!

Not sure if now is a good time to get into a tracker mortgage. I like to know what i'm paying out each month too.

Have you got the additional amount agreed in principal ?

Don't feel you are tied to them just for the sake of £2,000 early repayment. There are so many good deals out there at the moment and if you have a bit of breathing space take a look on the Market. There are a lot of good capped deals for 2-5 years and to be honest I think we are all just waiting for a rate rise, at which point you will be laughing.

Sorry it's me not really understanding the process, but i think you answered the question.

Basically i'm selling my current flat and going to be buying a house. I guess my options are to pay the early repayment fee and find another mortgage or port the mortgage over and borrow the addtional lend with my current mortgage provider.

Hi
Sorry trying to get my head around what you mean, but to port the mortgage and keep the same deal you need both buying and selling completion on the same banking day. If you are looking to use a different bank to purchase property number 2 then your current lender will charge an early payment penalty. Normally that is 2-3% over the first year depending on what mortgage type you are on.

If I have misunderstood your question reword it :)

Thanks for the reply.

So am i right in thinking then that i'm not able to take up another mortgage offer from another lender? If i 'port' and buy and sell on the same day does that mean i would be able to take up a new offer from another lender? or do i still have to lend that extra money from the original mortgage company?

Hi

You can port (meaning keep as is, rates and deals without early repayment penalty) your mortgage account which then holds the interest rates and prevents any unnecessary admin charges, however to do this, the draw down debit must take place on the same day as the transaction. What it means is you have to buy and sell on the same day. You may be better off in asking what the current early redemption and any other fee's (I see you write 2k approx) would be versus the longer term savings on a 5 year fixed rate. Your other question is about 2 mortgages and two properties. Unless it's a buy to let mortgage they do ask that you live in the main mortgaged property as part of the application criteria. If you apply for another mortgage with another company for another house which you intend to use the new property as your main residence you may be in breach of your mortgage conditions with the original mortgage..... if they found out. Think before you start rattling your original company too much.... hope this helps

Hi all,

Desperate for some advise here.

I'm in the process of selling my current flat (first property) and i'm now looking at buying a new house with my partner and myself. The house is a new build and won't be built until June so have started looking at what i need to do in terms of my current mortgage and getting a new mortgage. I have a mortgage of c/£43k which is on a fixed rate until May 2014 at 4.15% with the Post Office / Bank of Ireland.

I have been looking at mortgage rates and can seemingly get rates of about 3.8% - 4% for the lend of mortgage and deposit i'd be looking at. I have an early repayment fee currently at about £2k on the current mortgage and for the low rate i'm looking at i'm looking at about that again for the fee to start a 5 year fixed rate.

My question is though i called my mortgage company and they said that i can port the mortgage but new rates would be 5.29% for another 5 years fixed rate! They said i can't have 2 mortgages on 1 residential property which i guess makes sense if i didnt pay and they repo'd the house who owns it...Santander or Post Office. So what are my real options, i dont understand the porting meaning really. Can i keep that mortgage going until 2014 at the new address and then get another mortgage with another company for the new property or do i have to sell the current property, pay off the mortgage + early repayment charge and then set up a whole new mortgage?

Help!