Pay Off Mortgage Or Move House

virgin_moneysaver

I have £8000 left on my mortgage & my current fixed rate is due to end 31st May

At the end of April I have £10,000 plus coming off a Guaranteed Income Bond

Our house is valued at £175,000 & we are considering moving

Do we continue with the mortgage & use the lump sum for the fees due with the house move

Do we pay off the mortgage & just start a new mortgage if we do move

If we continue with the current mortgage, & then decide not to move we would face penalties in finishing the mortgage early in to the new fixed rate period

Or do we not use a fixed rate at all

If you are confused how do you think I feel!!

Anybody have any ideas or similar experience?

cheers

littlemisscheap

I guess the answer to this lies in whether or not you expect to keep on getting a steady income.

It may sound strange but your income is what determines how much leeway you are likely to have and how much you can stretch yourself

virgin_moneysaver

The house that we have in mind will probably go for around about the same, or maybe less, as we'll get for ours - we can't go any further with our house as we've hit about the ceiling in terms of probable value - this other house is in as good an area but has potential & more room - so the difference in the mortgage would be negligable - just what we spend on it over the coming years

MarkyMarkD

You can't transfer the mortgage, per se.

You will have to redeem one mortgage, when you sell the first house, and then take out another once you've moved - but most lenders won't advance an amount as small as £8,000 - the normal minimum is £25,000.

In your circumstances, I certainly wouldn't switch to another loan with any sort of tie; I'd probably pay off the remaining amount of the loan unless you desperately need the money to live on.