Moving house & mortgage deal ending - options?

[BERGS2]

Hi All - \

We are in the process of (hopefully) moving house - having put ours on the market back in January and accepted and offer on it Late Feb.

From a mortgage cost perspective, we thought we'd timed it to perfection, as our mortgage deal (2.74 fixed) comes to an end on the 3rd June & we had been looking (due to a short chain) at a mid-June completion.

As ever - nothing really goes to plan, and our vendors purchase has very recently fallen through, putting them back to the looking phase.

Our mortgage co's SVR is about 4.7% so we'll be looking at an extra good few quid on the mortgage until we move. If this is July/August - not the end of the world - if it moves much further back, the cost of being on the SVR will start to really add up.

Are there any options to minimise the financial 'damage'?

(breaking our chain and moving in with the outlaws is one option, but I'm not sure if would be beneficial to the long term future of our marriage )

[Sarnie]

Remortgage as normal at the end of your deal and then port it to the new property when it's ready to complete......

[grahamm]

Don't put your buyer off. Move into rented if necessary

[BERGS2]

grahamm said:

Don't put your buyer off. Move into rented if necessary

Yeah - we're already exploring that one - the wifes family are in Oz for a month over the summer - so that may be an option.

The (slightly) annoying thing is the couple we are buying off were (initially according to the EA) 'moving to their place in spain'

brill, we thought, - minimal chain...

then in transpired to 'moving part time to their place in spain, with a bolt hole here in the UK'

OK, not as good as the first - but still more flex than a fully 'chained upwards' seller

now it would appear (their purchase having fallen through) that they are not willing to move into rented, as they'd rather just move the once as they are downsizing....

Bah!

moral of the story: don't believe a word that is said that is not put in writing.... particularly if those words are coming from the vendors EA!!

[BERGS2]

Sarnie said:

Remortgage as normal at the end of your deal and then port it to the new property when it's ready to complete......

thanks Sarnie - hoped you may show up :-)

Trouble is, we've lined everything up with the new lender (TSB) on the new place - figuring that a max of a month or so on SVR with us out of deal would be more flexible

Wouldn't the fees all double by effectively re-mortgaging twice in the space of three months or so?


or am i just making it more complicated that it actually is? Should I just call TSB to try to get the current offer (on the new place) pulled forward to cover the period when were still in the old?

Their valuation fee if relatively high (as seems to be the case with the headline grabbing mortgage deals) - so i'm pretty sure i'm just going to have to suck it up....

[Sarnie]

BERGS2 said:

thanks Sarnie - hoped you may show up :-)

Trouble is, we've lined everything up with the new lender (TSB) on the new place - figuring that a max of a month or so on SVR with us out of deal would be more flexible

Wouldn't the fees all double by effectively re-mortgaging twice in the space of three months or so?


or am i just making it more complicated that it actually is? Should I just call TSB to try to get the current offer (on the new place) pulled forward to cover the period when were still in the old?

Their valuation fee if relatively high (as seems to be the case with the headline grabbing mortgage deals) - so i'm pretty sure i'm just going to have to suck it up....

You wouldn't be remortgaging twice, you'd be remortgaging once and porting once.

Of course, sitting on the SVR for a while will be easier, simpler and provide more flexibility, but you mentioned that the SVR would be expensive for you if things drag on.......it's impossible to judge without having all of the figures to hand.

It also depends on how long your buyer is prepared to wait for you......completing your sale and moving into rented accommodation might even be cheaper than being on the SVR for say six months plus?? As mentioned, it's hard to make a judgement without the figures...

Good luck!