Want to move house but keep mortgage

MiM

I've got a great deal on my current mortgage, interest only at a fraction over the base rate for life of the mortgage. Lots of equity
in the house.

Got married a couple of years ago and would like to buy bigger house. I'd imagine I can't port the current deal.

I've got some friends who would rent the house from me. Is there any way I could buy the new house on a Buy to Let and keep existing house on current deal? Or any other ideas?

Thanks!

Person_one

MiM wrote: »

I've got a great deal on my current mortgage, interest only at a fraction over the base rate for life of the mortgage. Lots of equity
in the house.

Got married a couple of years ago and would like to buy bigger house. I'd imagine I can't port the current deal.

I've got some friends who would rent the house from me. Is there any way I could buy the new house on a Buy to Let and keep existing house on current deal? Or any other ideas?

Thanks!

What makes you think your mortgage isn't portable? I'd find that out first. If you switch to a buy to let mortgage you probably won't get to keep that great interest rate anyway, its normally higher for BTL, you'd also need a decent amount of equity in the property.

Besides that, I'd think renting to friends could be problematic if there was ever a disagreement or a problem, how much do you want to keep them as friends?

getmore4less

lender?

check with them for portability

_Andy_

You can't get a BTL mortgage for the house you're moving into.
What you need to do is ask your lender for consent to let on existing property, then get a residential mortgage for the new place (which I assume you're moving into).
That said, how are you financing the deposit for the new place?

Thrugelmir

Make the most of the current deal whilst rates are low, and save as hard as you can. Most lenders allow porting, but additional lending is at current rates of interest. So whilst you can make money do. As this situation is once in a lifetime opportunity.

Neither CTL or BTL are no longer as viable options as in recent years with the increased interest costs and charges on the products. So do your homework before leaping into renting out your property.

MiM

Advice was spot on, many thanks. Can port mortgage, additional lending at current rate. Now to find a house!

MiM

Follow up question on this one...

They do allow porting - but what if there's a gap between selling my house and buying the new one?

Thank you!

Thrugelmir

Any new borrowing will be on the current rate of interest on the product option you opt for.

luckyfool

MiM - Thrugelmir I don't think thats the case for this client. They have been told they can get additional borrowing at the old product rate, sounds a bit like IF maybe.

There will be a deadline between redeeming your old mortgage and starting the new ported one. If you exceed the deadline the product will be gone and you will be stuck with whatever new rates are available. This allowable gap will vary from lender to lender, and can depend on when your original mortgage was taken out. e.g. It can be as little as 8 weeks (C&G mortgages taken out in the last couple of yrs), and may be as long as 6 months. You will need to check with your lender.

MiM

Thanks Luckyfool, that's much appreciated. We're looking to move and have a friend with an empty flat so we could get out quickly and attract buyers with a chain-free sale. But don't want to lose advantage of the base rate for the life of the mortgage that I have on what remains of my current borrowing. I'll check with lender, Britannia, asap.