Taking out another mortgage to move house

Secretxdays

Hiya just looking for some advice if anyone can help me.
I currently own a flat myself and my outstanding mortgage is 135,000 approx. I have fixed rate with HSBC for the next 18 months. I am moving with my partner and we are buying our next property together.

As I'm tied in to HSBC I can transfer my mortgage to my new property and then take out another mortgage to cover the cost of the new property (including my partners income). Both mortgages will be then joint.

Or

I can pay HSBC a fee of around £3000 to come out if the fixed fee and get a whole new mortgage.

I think I prefer the first option as this would be the cheaper option, but I want to know do I have to stay with HSBC for the second part of the mortgage or could I use another lender?

Thanks

sal_III

You will be buying the new property jointly, and will need a joint mortgage. I highly doubt your scenario falls under porting your current offer to the new property.

But don't take my word for it, call HSBC and ask them what your options are.

I suspect they will tell you that you can't port and will have to redeem your current mortgage incurring the ERC

Secretxdays

Hiya
HSBC have confirmed I can move my mortgage to the new property add my partner and take out another mortgage to cover the cost of the next property.

kingstreet

sal_III wrote: »

You will be buying the new property jointly, and will need a joint mortgage. I highly doubt your scenario falls under porting your current offer to the new property.

That's a pretty standard facility many lenders offer when porting.

MortgageMamma

Yes you will have to take the second portion of the mortgage with HSBC

getmore4less

I think I prefer the first option as this [STRIKE]would [/STRIKE] might be the cheaper option,

Until you have the numbers from HSBC on what they will offer you won't know if there is a better option out there.

current rate, top up rate and LTV will all influence the outcome,

When does the ERC drop to the next lower %.

If it is at the 1 year to go, it could take 6 month to sell and find a place anyway.


Get some indication of what rates they will offer for the top up.

Then have a look around at what else is out there.