Buying a new house before the end of fixed bit!

dagrowler

hello,

i bought a house a year ago for 119,000, my mortgage was for 99,000 and i've basically paid off nowt. However, i now want to buy a bigger house with my fella. My mortgage is with scottish widows and they've told me they'll charge me 3% if i leave and go to another mortgage provider (i've had a pretty good experience with them so don't mind staying with them).

What do i do? do i sell the house and pay off my mortgage and then get a new one with SW or do i jsut keep the current one (fixed at 4.75%) and top it up to what we need to borrow for the new house (i'm assuming at a higher rate) and then renew it in a year when the fixed rate finishes...?

herbiesjp

dagrowler wrote: »

hello,

or do i jsut keep the current one (fixed at 4.75%) and top it up to what we need to borrow for the new house (i'm assuming at a higher rate) and then renew it in a year when the fixed rate finishes...?

I think this would be the best course of action for you - assuming they will lend you the extra funds.

HOwever have a word with a fee free whole of market adviser just to make sure there is nothing better out there, however being on a 4.75% fixed rate is a very good rate to be on

HTH

dagrowler

excellent, and how do i figure out how much we can borrow on the top up? we should have a 40,000 deposit from the sale of my current house...

herbiesjp

Your best bet would be to call SW and explain your scenario.

They should be able to tell you very quickly what you will be able to borrow.

The £40k should help you quite a bit

HTH

dagrowler

great!! thanks for you're help. i htought you'd all be mean becuase i'm obviously stupid about mortgages lol.

herbiesjp

YOu are doing exactly the right thing by asking questions - nothing stupid in that

Glad to help

dagrowler

does 190-210 sound about right for the new house?

current one is worth 140, mortgage is 99 and we both earn around 25 a year...