- Charges if you want to leave the deal early – you’re usually tied in for the length of the fix.
- The end of the fixed period – you should look for a new mortgage deal two to three months before it ends. If you don’t, you’ll be moved automatically onto your lender’s standard variable rate – which is usually higher.
Think carefully about remortgaging or locking into a new deal with large early repayment charges if you’re thinking of moving house in the foreseeable future.
Most mortgages are now ‘portable’, which means they can be moved to a new property. But, moving is still treated as a new mortgage application so you will need to meet the lender’s affordability checks and other criteria to be approved for the mortgage.
If you don’t pass the checks, then your only option might be to approach other lenders, which will result in you paying the early repayment charge of your existing lender.
‘Porting’ a mortgage can often mean only the existing balance remains on the current fixed or discount deal so you need to choose another deal for any additional borrowing for the move and this new deal is unlikely to tie in with the timescale of the existing deal.
If you know you’re likely to move house within the early repayment charge period of any new deal then you may want to consider deals with low or no early repayment charges giving you more freedom to shop around amongst lenders when the time comes to move.