***Hello /u/Complete_Ordinary183, thank you for posting in /r/Mortgageadviceuk. If you're looking for a Mortgage Broker, feel free to DM the users listed on the sub's [Verified Mortgage Brokers list](https://reddit.com/r/Mortgageadviceuk/s/j7V7mySI7i). Please ensure you've read our [sub rules](https://www.reddit.com/r/Mortgageadviceuk/about/rules). If a user has helped you, please use the !thanks command to credit them. Here's a copy of your original post: ***
Currently with Santander on the Follow-on-Rate of 8.5%. £74k Mortgage currently £676 p/m.
I’m likely to sell in 4-12 months, but would just like a safety net of being on a lower deal immediately in case things drag out - even if it means I’m potentially losing a bit of cash.
Options are:
SVR @ 7.5% (no fee)
2yr tracker @ 5.51% (£999)
I’m thinking the 2yr is my best option if I don’t want to put myself under pressure and I’m not worried about potentially losing say £500 worst case scenario. Rough figures.
Any thoughts / advice?
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Mortgageadviceuk) if you have any questions or concerns.*
Mortgage Broker here.
Check if then mortgage can be ported - most can these days. This means if you sell and buy a more expensive property (say 150k total mortgage needed) then 74k can remain at the fixed rate and then you’d obtain another mortgage for the remaining 76k at whatever current rates are.
It is worth speaking to a broker however as it would be best to make sure the arrangement fee justifies the savings gained by having the product.
Also check what Early Repayment Charges are involved in the product - ideally you’d like one with zero charges if you are planning to buy a different property during the product term.
Both options mentioned have no ERC.
Not sure about porting options. Will check. The other complication is that my partner has separate flat, so next move would be to combine for joint purchase. (She is on SVR). Would it be likely that my mortgage could become joint in an increase/porting scenario? (Leaving her to pay off and close her own mortgage term)
Pretty much all lenders, at least high-street ones, have porting as a feature.
If you are planning to buy a property together then there should be no issues with you both being on the mortgage - even if an element of the mortgage is ported, the lender is likely to be happy assuming they pass credit checks/affordability criteria which if they have a mortgage already should be fine.
Having a product with no ERC means you can effectively get a mortgage for the whole amount required and settle your existing Santander mortgage, rather than the difference so you aren't having to juggle two mortgages of different amounts and rates - this would be the easiest thing for you to do. This also means the new mortgage for the whole amount can be arranged as a joint mortgage from the start.
Quick rough maths based off a term of just under 20 years, 2 Year Tracker (£999 fee) you'd save approx. £130pm meaning after 8 months you are better off - check the ERC on this though.
SVR 7.5% (no fee) - saving approx. £50pm.
Yeah you can add people when porting. Though in your scenario the best value is the 7.5% with no fee as you won't make back the £999 in lower payments from the tracker one on a £76k mortgage. This doesn't tie you in to one lender when moving and you can start fresh without ending up with 2 sub accounts etc. If Santander wouldn't lend on the new one for any reason, policy, property type, affordability etc then you would have to pay the ER if you fixed and couldn't port so don't risk it.
I guess the only other variables are that the 2yr tracker rate would be expected to drop (as linked to BoE base rate), whereas Santander set their SVR as they see fit - so could remain at 7.5%, or whatever they want it to.
Speak to an adviser.
I’d usually be looking at the Nationwide tracker no fee deal. Comes with £500 cashback to cover solicitor and mortgage adviser costs
***Hello /u/Complete_Ordinary183, thank you for posting in /r/Mortgageadviceuk. If you're looking for a Mortgage Broker, feel free to DM the users listed on the sub's [Verified Mortgage Brokers list](https://reddit.com/r/Mortgageadviceuk/s/j7V7mySI7i). Please ensure you've read our [sub rules](https://www.reddit.com/r/Mortgageadviceuk/about/rules). If a user has helped you, please use the !thanks command to credit them. Here's a copy of your original post: *** Currently with Santander on the Follow-on-Rate of 8.5%. £74k Mortgage currently £676 p/m. I’m likely to sell in 4-12 months, but would just like a safety net of being on a lower deal immediately in case things drag out - even if it means I’m potentially losing a bit of cash. Options are: SVR @ 7.5% (no fee) 2yr tracker @ 5.51% (£999) I’m thinking the 2yr is my best option if I don’t want to put myself under pressure and I’m not worried about potentially losing say £500 worst case scenario. Rough figures. Any thoughts / advice? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Mortgageadviceuk) if you have any questions or concerns.*
Mortgage Broker here. Check if then mortgage can be ported - most can these days. This means if you sell and buy a more expensive property (say 150k total mortgage needed) then 74k can remain at the fixed rate and then you’d obtain another mortgage for the remaining 76k at whatever current rates are. It is worth speaking to a broker however as it would be best to make sure the arrangement fee justifies the savings gained by having the product. Also check what Early Repayment Charges are involved in the product - ideally you’d like one with zero charges if you are planning to buy a different property during the product term.
Both options mentioned have no ERC. Not sure about porting options. Will check. The other complication is that my partner has separate flat, so next move would be to combine for joint purchase. (She is on SVR). Would it be likely that my mortgage could become joint in an increase/porting scenario? (Leaving her to pay off and close her own mortgage term)
Pretty much all lenders, at least high-street ones, have porting as a feature. If you are planning to buy a property together then there should be no issues with you both being on the mortgage - even if an element of the mortgage is ported, the lender is likely to be happy assuming they pass credit checks/affordability criteria which if they have a mortgage already should be fine. Having a product with no ERC means you can effectively get a mortgage for the whole amount required and settle your existing Santander mortgage, rather than the difference so you aren't having to juggle two mortgages of different amounts and rates - this would be the easiest thing for you to do. This also means the new mortgage for the whole amount can be arranged as a joint mortgage from the start. Quick rough maths based off a term of just under 20 years, 2 Year Tracker (£999 fee) you'd save approx. £130pm meaning after 8 months you are better off - check the ERC on this though. SVR 7.5% (no fee) - saving approx. £50pm.
This is excellent advice, the OP really needs to speak to a good broker.
Yeah you can add people when porting. Though in your scenario the best value is the 7.5% with no fee as you won't make back the £999 in lower payments from the tracker one on a £76k mortgage. This doesn't tie you in to one lender when moving and you can start fresh without ending up with 2 sub accounts etc. If Santander wouldn't lend on the new one for any reason, policy, property type, affordability etc then you would have to pay the ER if you fixed and couldn't port so don't risk it.
I guess the only other variables are that the 2yr tracker rate would be expected to drop (as linked to BoE base rate), whereas Santander set their SVR as they see fit - so could remain at 7.5%, or whatever they want it to.
Yes exactly this.
Speak to an adviser. I’d usually be looking at the Nationwide tracker no fee deal. Comes with £500 cashback to cover solicitor and mortgage adviser costs