Moving a mortgage to another property with already has a mortgage on it

kmmr

Hi,

I am reposting this, as I realise the house buying section was the wrong area! Hopefully someone can help me here.

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

dimbo61

You can only ask the lender but I think the answer will be NO
why would they allow themselves to be worse off
If you pay off 1/2 the £300k mortgage why do you think they will give you the rest £150k fixed at 3.99%
You are better off to overpay the more expensive mortgage with the profit !!!( dont forget the TAX man ) over the next 18 months and then sell the first property and use any profit ( after paying capital gains TAX ) to pay a lump sum off your main property and hopefully get a better deal because you have a better LTV
GOOD LUCK

Jonbvn

I agree with dimbo, that no lender is likely to accept what you propose. However, perhaps you should consider getting advice from a mortgage broker on this matter.

kmmr

Hi,

Thanks, your advice is probably right - I was just hoping someone had tried to do it! There is no benefit for the firm to keep me as a client at all, but they may legally not be able to stop me porting the mortgage. But, they can of course make it too difficult to bother.

I might see if i can get them to swap the underlying properties, and keep both mortgages. Would mean I have one 90% mortgage, and one which would be about 50%. Means I transfer the equity to the house I live in, and perhaps I can get an equity release mortgage. (Although I know how popular they are now!)

End of the day I suppose I have to speak to my lender!

Thanks,

Kmmr