transferring a mortgage without paying off?

Englishmastiff

Bit of a strange one here.
I live in a house with my mother (long story), wife and kids.
We currently have a IO mortgage with BOS for 137k which has reverted from the fixed to the SVR.
My mother has offered to buy us out of the house and has offered 200k.
I started a business 4 months ago but also still work as a police officer 2 days a week earning 800 net month from that employment. My wife earns 400 a month from her employment.
The business is doing very well but is essentially useless as income towards the mortgage as it can't be verified.
Here is the question...........
Can we:
keep the current mortgage of 137k, port it across to the new property which is 265k and pay the 128k cash.
This would leave a handsome LTV for the lender and extra cash for us?

I think the answer is that the initial 137k needs to be paid off with 137k of the 200k leaving 63k and a NEW mortgage of 202k would be required.

I hope that makes sense.
And, are there such products as Star/self cert still available. We earn around 50k a year with NO debt at all and a good (not perfect) credit history.
Can anyone think of any other ways to achieve what we want?

Thanks for taking the time to read.

Thrugelmir

In short not achievable. You'll need 3 years of accounts to support a mortgage application.

Though why not sell you mother the house and then save. If you can afford a £200k mortgage then saving a large sum quickly shouldn't be an issue.

Englishmastiff

I understand the inability to be able to raise the 200k mortgage now, but can't get my head around why the mortgage I have can't be attached to the new house as security. I can afford it now, I have done so for 6 years without defaulting. What is the reason for not simply shifting my current mortgage to the new property which provides adequate security in terms of LTV?
I spoke to BOS. They said that on SVR-NO as The "portability" simply referred to not having to pay ERC's. They said that if I take out a new product that has ERC's, I could then look to port that mortgage to the new property..........But I would still need to show affordability for the existing 137K!! WHY??

Thrugelmir

Porting is merely the transfer of the terms and conditions attached to a mortgage. Not the transfer of the mortgage itself.

In moving house you go through the whole mortgage application again. So have to demonstrate that you can afford it under current lending criteria.

Englishmastiff

OK,

So if I could show affordability for the current 137k mortgage, It could be moved across to the new property without having to pay off the mortgage and simply attach it to the new property?
As you can see, I have been putting much thought into this. My good lady wife has just reminded me that I am part time for 6 months. As of 01st november, I am full time on 30k, plus my wife's income of 6k.
From what BOS told me, the above is possible but it's complicated and they might not have understood.

Thanks for all your help Thrugelmir.

Thrugelmir

Lenders are changing their rules on porting all the time. So until you are in a position to make a formal mortgage application (not just an enquiry), its impossible to answer with certainty.

On a salary of £36k you may manage to obtain the £137k mortgage. However £200k is out of reach.

My suggestion would be to start paying down your mortgage now and increase your equity.