Transferring a mortgage but house not ready

moneybunny123

Our mortgage product has come to an end and we're currently on the Bank's variable rate. It's not colossal, but we want to try and fix in on a similar rate for another 5 years. HOWEVER....our house is currently on the market and the house we are thinking of buying isn't even built yet.

I know that a mortgage has to be secured to a property, and if we took out a 5yr deal NOW it would be fixed on our current home. But what if we were to sell but wanted to KEEP the mortgage going whilst we lived in rented??

Is this possible? Do any banks/building societies allow you to do this for a period of, for example, 12 months? As I say, it would just be until our new home is built (it wont be built until Phase 3 of the development, which is currently only in Phase 1) but we have someone interested in buying our house now.

dimbo61

In a word NO
You cant keep a mortgage while waiting for a property to be built so you have the choice of staying on the SVR and selling the your existing home and going into rented.
If you build up savings while in rented then when you do look at getting a mortgage you might get a better deal

Wh05apk

Most lenders will allow you to retain the mortgage product for upto 6 months, so if you sell and redeem, you will pay the redemption penalties, provided you completed on a new mortgage on the same deal, they will normally refund the penalty paid.

The danger here is that you may not complete within the 6 months, or worse, may not fit their criteria for the new mortgage, for potentially a few months at a higher rate, I would probably stick with it, and look around for a new deal when you move.