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Moving mortgages from one house to another.

Hi,

Just a quick question that I think will start to come up more as people try to hang onto their good base rate tracker mortgages (which will probably never be offered at such good rates again!)

So - I have two properties at the moment, both mortgaged.

1: £150k mortgage at 1.49% (base + 0.99 tracker for life). Property is rented out.
2: £300k mortgage fixed rate at 3.99%, 18 months remaining (reverts to tracker Base +3%). This is where I live.

The only real reason I am keeping the first property is because the interest on it is virtually nothing, and I get an excellent rental return. Otherwise I would have sold it.

However, I am starting to think about selling property 1, as it has about £80k in equity in it that I would like to use. In an ideal world I'd like to move the mortgage to property 2. Subject to the early redemption charge on mortgage 2 of course. So, I end up with a £300k loan secured against property 2, half at the higher rate, and half at the lower rate.

Has anyone sucessfully done this? I know you can port a loan (and Loan 1 is a portable loan) when you are moving, but can you do it to a place with an existing mortgage?

Both mortgages are from the same lender. Thanks in advance for any advice!

KMMR

P.s. Before you ask - Yes, I have permission to let from the mortgage company!

Comments

  • pie81
    pie81 Posts: 530 Forumite
    Dunno. Why not call the mortgage company and ask?
  • As pie says, ask lender.

    Technically, you do not move mortgages, you take out a new one and pay off the old one with it - new mortgage may or may not be on same terms.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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