Portable mortgage not really portable !!!

Motorisedman_2

Hi,

I currently live in my own home together with my partner to and am four years into a five year fixed rate (5.09%) which expires at the end of 2010. This still has penalties of 3% in the last year but I was told it was portable. I owe £100,000-00 on the mortgage and the property is valued in the region of £150,000-00.

Together with my partner we own outright a second property which is currently undergoing complete renovation and into which we intend to move when completed in the next few months.

I would anticipate that when complete it would be valued somewhere in the region of £170-000-00.

I would like to rent out my current house and have asked my current mortgage provider (Yorkshire) about porting my mortgage across to the other house as I am not looking to borrow any extra above the £100,000-00 at this stage.

They say that their criteria stipulates because I already own the property I cannot port the mortgage until I have lived in it for 6 months. They say I should have come to them before I purchased it.

They do however say that I could get consent to let my current property and would only have to pay a £100 admin fee.

If I decided to take this route would I be able to get a second mortgage on the other property or would it be difficult as I already have a domestic mortgage already albeit with consent to let.

Ideally I would be looking to convert my current mortgage to interest only and rent the property out and use the mortgage on the second property to pay off external debt used to fund the renovation.

I’m not really sure which are the best options available.



Many Thanks in anticipation of any advice offered. :beer:

Conrad

Yep a second mortgage should be ok as long as it all stacks up. This point about not having owned the new one 6 months is a feature of many a lenders criteria btw.
Before a standard lender would release funds, the new one must be habitable with working heating, kitchen and bathroom.
If funds are needed urgently and it is'nt habitable then a specialist lender just as krona, could be the answer.

Motorisedman_2

Hi,

Many Thanks thats a relief I must say, another quick question if I may in relation to my consent to let (assuming it is granted that is) Would the consent expire at the end of the 5 year fixed rate or would it continue on presumably whatever the variable rate is at that time ???

The only reason I ask is that that it would no doubt be preferable to stay on the variable rate as opposed to having to get a new buy to let mortgage at a no doubt loaded rate.

Thanks again

TEDDYRUKSPIN

Motorised man! It might be easier for you to ring yorkshire bank instead. They might just allow you to rent the property out anyway for a fee. Allowing you to keep the existing mortgage package and wasting alot of application form time for both of you.