Jen1977ni

Ok, I am currently on a fixed rate and have been for the past two years, my 'deal' is up in a few months time, so what happens once it's up?

A few other questions:

* Do my payments automatically fall to the current percentage immediately kinda thing? Could my mortgage payments potentially drop by a few hundred a month!? (or is this just wishful thinking?!)

* Do I need to start another deal, if so, should I go fixed again or should I do something else?

* If I do start another deal, is there usually a clause in the mortgage whereby I can't sell in a certain timeframe from starting the new deal?

* If I decided to let it out when I move to Australia, til the market improves, would I need to change to a certain kind of deal? Also, how common is it to sell a house with a sitting tenant, for someone else to take on and continue the tenant to allow to rent?

So many questions, don't worry I do have a financial advisor but part of this coming week is a public holiday here in Northern Ireland so I wont be able to speak to him til much later in the week, and kind of want to go armed with a bit of knowledge beforehand....


Thanks everyone

Jen1977ni

There is also the option of going 'interest only' for a while til the house is sold, that would be a way of putting a few quid away before I finally get to Oz? Or is this totally stupid?! All feedback would be greatly appreciated!

JCSUPERMOTO

Whatever ya do Jen don't lock yaself into a mortgage deal

we was on a 2 year base rate tracker which was only half a percent,but a false saving really.
But cos we sold after 6 months into deal,we had to just pay £4k penalty!
What interest rate ya paying now,and what are the bank normal variable rate?

chrisling

Probably the easiest and most reliable info for this would be a quick call to your mortgage providor.
Just be wary of signing up for any new deals unless you have thoroughly read the terms of any deal offered, but I don't really need to tell you that, you're far from thick.

Chris.

Jen1977ni

Thanks you two, not sure what rate I'm currently on, will speak to my FA when he's back on wed...

crikey

Check out your old mortgage offer letter, it should tell you what the rate will revert to after the deal ends.
Be careful before changing as it is possible the rate will be 1 or 2% above base so nice & cheap and no one is selling new mortgages that low at the moment.
Also while in the paperwork some companies say they do not allow you to rent your property out they may consider it if you ask them, so again don't change until you have spoken to your mortgage company.

Bermudashorts

My pennysworth...

Your current mortgage will most probably revert to the bank's own standard variable rate when the fixed term is up. The SV rate will certainly be higher than the Bank of England base rate but should be tracking it to a degree.

I think you should talk to your bank or another provider about options and specifically mention that you may wish to rent the property out in the near future as there are different types of mortgages for rental properties. It could be quite hard to sell a house with a sitting tenant.

An interest only mortgage is not a bad idea for a short period of time to improve cashflow, it would be a terrible decision (IMO) as a long term strategy.

Jen1977ni

The interest only idea would be for thos eexact reasons, to improve cashflow before the big move. It would only be a short term thing....

Jen1977ni

Have notified them that I want to go interest only, will save £150 a month, which all adds up! Then when my deal ends on the 1st Oct, rates permitting, I'll save about £250, WOO HOO!

Tubbs2Oz

That's good. When our fixed rate ran out we defaulted to a Bank of England Base Rate tracker, but some default to the mortgage company's own variable rate which can be higher. Have you applied for any sponsorship yet?

Jen1977ni

Yeah I have...but have a few other options on the cards too....which I can't divulge just yet....so lol

Tubbs2Oz

Ooohh. Have you found yourself a nice Australian man?!!

Jen1977ni

Haha no my mans English lol

Jen1977ni

It's not his fault tho lol

Tubbs2Oz

That's what I keep telling my husband!