Fixed rate breakage charges

[kingofblues]

Hello,
I wonder if you could please enlighten me on the following:
At present there are massive charges for homeowners to come out of their fixed rate mortgage and start on a variable rate. As I understand it, this is because variable rates are so much less than the fixed rates they locked into. At the moment fixed rates are not too bad. Let's say I took out a fixed rate now and ECB rates started to increase. And at a future date I sold my house when variable rates are now above the fixed rate, will there now be a breakage fee?
The above q is based on variable rate being higher than fixed rate.
Also if I do take out a fixed rate,and sold house, no matter what , will there be a breakage charge when I sell. I have heard that if you take out a mortgage with the same institution on your new home then there will not be a breakage fee?
Thanks.

 

[elcato]

There was an earlier thread about where some banks were not charging any release fee on fixed to variable when the actual fixed was lower than variable so answer to your first question - yes. I would think that all banks would be willing to do this as it would save them money.
You would need to check with your lender when taking up a fixed rate what the terms are and ask would they be willing to allow no breakage fee in selling. My guess is they would be flexible on this and some will and some wont.