Switching fixed mortgage to tracker within initial term
Discussion
Hi all
Before we are able to speak to the mortgage co, I wondered if anyone would be able to offer some thoughts on the below.
Scenario:
In process of selling house with no onward chain (house is empty and currently living elsewhere)
Existing fixed rate mortgage with Santander with an initial term and ERC that expires on 3 January
Ideally wouldn't want to port mortgage if we can help it
Buyers are keen to complete ASAP (and ideally before Christmas).
Ideally completion would be pushed to 3 January, in which case mortgage can be paid off with no issues, however we're trying to explore options to complete sooner if required.
Santander mortgage allows us to move to another product within 6 months of current deal coming to an end, assuming that the new mortgage is at least as much as the current mortgage balance. There are also no fees for switching product if we stick with Santander.
Does it seem feasible that we could switch from the current fixed rate mortgage (which is less than 1.2%!) to a Tracker with no ERC, and then potentially pay off that tracker within a few days/weeks?
I'm presuming there may be some repayment of legal fees, but that would be significantly less than the ERC and happy to suck that up if it means we can complete sooner and keep our buyers happy!
Hopefully we can just stick to January and avoid the hassle, but need a backup plan (and need to get moving pretty quickly if we're switching products!).
Thanks in advance
Before we are able to speak to the mortgage co, I wondered if anyone would be able to offer some thoughts on the below.
Scenario:
In process of selling house with no onward chain (house is empty and currently living elsewhere)
Existing fixed rate mortgage with Santander with an initial term and ERC that expires on 3 January
Ideally wouldn't want to port mortgage if we can help it
Buyers are keen to complete ASAP (and ideally before Christmas).
Ideally completion would be pushed to 3 January, in which case mortgage can be paid off with no issues, however we're trying to explore options to complete sooner if required.
Santander mortgage allows us to move to another product within 6 months of current deal coming to an end, assuming that the new mortgage is at least as much as the current mortgage balance. There are also no fees for switching product if we stick with Santander.
Does it seem feasible that we could switch from the current fixed rate mortgage (which is less than 1.2%!) to a Tracker with no ERC, and then potentially pay off that tracker within a few days/weeks?
I'm presuming there may be some repayment of legal fees, but that would be significantly less than the ERC and happy to suck that up if it means we can complete sooner and keep our buyers happy!
Hopefully we can just stick to January and avoid the hassle, but need a backup plan (and need to get moving pretty quickly if we're switching products!).
Thanks in advance
No.
Santander will allow you to secure a new rate, once you are within 6 months of your current rate expiring.
But, that rate does not take effect until your current rate expires Eg January 2024.
The only way to move to the new rate earlier would be if you incurred your current ERC, which you don't want to.
The only way to avoid the ERC is to complete after the date your current rate expires.
Santander will allow you to secure a new rate, once you are within 6 months of your current rate expiring.
But, that rate does not take effect until your current rate expires Eg January 2024.
The only way to move to the new rate earlier would be if you incurred your current ERC, which you don't want to.
The only way to avoid the ERC is to complete after the date your current rate expires.
Are your buyers cash/ftb?- because if they are in a chain they can be "keen" to do anything they want - but in reality it's not in their gift and are only as strong as the weakest link in their chain.
i would sit tight till jan 3 - not much is going to happen before then in reality anyway.
i would sit tight till jan 3 - not much is going to happen before then in reality anyway.
eliot said:
Are your buyers cash/ftb?- because if they are in a chain they can be "keen" to do anything they want - but in reality it's not in their gift and are only as strong as the weakest link in their chain.
i would sit tight till jan 3 - not much is going to happen before then in reality anyway.
They have sold to a cash buyer, and don't have a mortgage. Searches are back, and survey is done.i would sit tight till jan 3 - not much is going to happen before then in reality anyway.
So in theory there's not a huge number of hurdles, but aware we've only realistically got 4 weeks to go.
The agent is speaking to the solicitors this morning to get an update, but ideally we wouldn't be the ones holding it up!
Sarnie said:
No.
Santander will allow you to secure a new rate, once you are within 6 months of your current rate expiring.
But, that rate does not take effect until your current rate expires Eg January 2024.
The only way to move to the new rate earlier would be if you incurred your current ERC, which you don't want to.
The only way to avoid the ERC is to complete after the date your current rate expires.
That's a shame, especially when if we were moving house and took out a new one within 6 months they'd waive the fees.Santander will allow you to secure a new rate, once you are within 6 months of your current rate expiring.
But, that rate does not take effect until your current rate expires Eg January 2024.
The only way to move to the new rate earlier would be if you incurred your current ERC, which you don't want to.
The only way to avoid the ERC is to complete after the date your current rate expires.
Their previous guidance talked about a new product either starting immediately, or at the expiry date, whichever was better, but that now seems to have been replaced by the 6 month mortgage charter stuff.
V8OW said:
That's a shame, especially when if we were moving house and took out a new one within 6 months they'd waive the fees.
Their previous guidance talked about a new product either starting immediately, or at the expiry date, whichever was better, but that now seems to have been replaced by the 6 month mortgage charter stuff.
Lenders used to allow you to transfer to a new rate within 6 months of the current rate ending, when the new rate was going to be lower than the current rate, which isn't the situation currently.Their previous guidance talked about a new product either starting immediately, or at the expiry date, whichever was better, but that now seems to have been replaced by the 6 month mortgage charter stuff.
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