Should I move house before fixed rate ends or after?

Racky_Roo

Hello

I'm a bit unsure about how mortgages work when you want to move house.
I want to move house due to a change in job to save a 40 min evil commute to work each day. I am on a fixed rate with HSBC at 4.74% until June 2010, but would like to sell straight after Christmas. I don't plan to borrow any more than £5k extra on top of my £89k current mortgage . Would it be better to wait until the fixed rate is about to run out to market the house and then look for a new fixed mortgage on the new house, or shall I move first on my current mortgage? There is a £1600 redemption fee if I leave the current loan before June 2010 but would that still apply if I moved but stayed with HSBC? As you can see I am very confused!

Mortgage_Help_4

The main thing to check here is your initial mortgage offer from HSBC and look at the section which will explain if your mortgage is portable to another propertly without a penalty being charged along with the terms and conditions for avoiding such a penalty i.e. you must move to the new proeprty the same day or within 3 months fo selling.

If you can't find your original mortgage offer then call HSBC and quote your mortgage account number and they will confirm if your deal is portable or not. If it is not portable then you would have to delay selling or paying HSBC back until the day the penalty expires. If it is portable then you can move now and top up the mortgage with the Standard Variable rate or something similar with no fees or tie in periods and when you have have moved house and your deal expires you can look around the whoe of market for another mortgage (most will pay legal and valuation fees to switch) and you will also get a quote form HSBC. It is not that complicated a situation which is good news. Best of luck.

Racky_Roo

Hi Mortgage Help
Yes it is portable I had checked that but was unsure if it meant it was free or not. Will get it on the market soon rather than later

Many thanks

Mortgage_Help_4

No probs mate. Some lenders charge a porting fee of around £250 but it is normally added to the new advance. Northern Rock forinstance charge an additional £495 if porting and increasing. However these fees are a lot lower than penalties. Sounds like good advice to remain with the devil you know. All the best.