Portable mortgage on a new build property?

wee_minnie

Hi currently have a mortgage of £130k on a tracker taken out in 2007 before the crash. Basically interest rate stands at 0.5% above base rate for duration of the term. Obviously do not want to loose this.

I have land and would like to build my own home, but transport the mortgage. I have checked the contract,the mortgage is definitely portable, but how likely is it (A+L) will allow me to port it to a new build property? The land is valued at 100k which is owned outright no mortgage.

Any advise on what questions Ishould be prepared for before I contact A+L would be very helpful

luckyfool

If you can afford to build the house and then apply to port the mortgage across then I can see it being ok (assuming the equity and your income etc is all ok). If you need Alliance and Leicester to move it across now to fund the build I think you have no chance. They will not fund a self build with a ported mortgage (in my opinion).

Peter_L

Exactly as Lucky Fool said - we are in the same position but buying a new build off a builder - yes to Port, maximum of 75% LTV, yes to increase in lending and yes to port for duration of term with an increase to term to 25 years, this is with Intelligent Finance.

From what I gather from past experience of wanting to remortgage a building project, you must:-

a.) Be living in the house as your main residence
b.) It must be habitable and serviced at all times (i.e. Kitchen, bathroom etc.)
c.) Not have substantial work being carried out so as to make it unhabitable (i.e. a building site)

You will probably need to speak to a lender who specialises in self builds and then transfer to A+L if you like but you will lose the ability to Port if you were to sell your house to finance the project you propose.