Increasing Mortgage, advice please.

burns

Hi,

I'm a first time home owner with a 5yr fixed rate (4.9%) mortgage with HSBC. I have been living in my current house for around 9 months but myself and my partner have been thinking of moving as our house is quite small and our neighbours are really noisy.

What I would like to know is, will HSBC allow me to increase my mortgage by about £20k - £30k?

I have increased my salary by 9k since we took out the mortage so I think we can manage the increased payments.

Will the actual extra money borrowed be calculated at 4.9% or would be at 5.25%?

Any help is greatly appreciated.

Thanks

willis

Hi,
I am in the same position, have a fixed rate mortgage with HSBC which I want to extend as I'm moving house. I called hsbc and they told me how much my mortgage could go up by (I've had a pay rise since I started the mortgage), you'll have to do the same. As far as I understand, the 'new' part is a totally different part, and will not be added on the rate you had the original mortgage on, it will be on today's rate. eg: 120k at 4.9% + 25k at 5.25%. Your best bet is to give them a call and they'll have all your details in front of them to tell you exactly what you can borrow and on what rate.
Hope that helps.

Rick62

Given your increase in earnings they should allow you to increase your mortgage amount. However it will not be on the same fixed product, you will have to take the further advance on one of their existing products.

You will also want to consider the impact of early repayment charges on the two parts of the mortgage, with the aim of changing it all to one product in 4 and a bit yers with minimum early repayment charges.

mhay_3

See if the deal is portable first. a lot of lenders will do the additional on the same rate if you are moving at the same time!

burns

Thanks for the replies, I guessed as much.

I hoping that we can come to some arrangement where they will borrow me the extra based on the original rate, as both my partner I have savings and joint bank accounts with HSBC as well as credit cards, loans and pensions if that counts for anything.

thanks