Transferring a Mortgage but house not ready

moneybunny123 · 16 April 2011 at 2:34PM

I've posted this in Mortgages too, but so far haven't had a reply.

We are currently on a bank's standard variable rate after our two year product came to an end. We'd like to fix in with another deal (probably 5 years) BUT our house is on the market and it looks like we've found a buyer. HOWEVER...the house that we want to buy hasn't even been built yet, and according to the developers may not be built for another year which means we'll move into rented.

BUT, if we fix in a 5yr mortgage now on our current house, then move into rented, can we keep that mortgage product going - or at least keep the deal? (obviously I know we wont own a house for it to be attached to) so I was wondering if any banks or building societies let you put your deal "on hold", so to speak.

PasturesNew · 16 April 2011 at 2:38PM

You'd be flying by the seat of your pants. Some deals do allow you some months between properties; 6 or 12 months is typical. It's a specific question you need to ask them (and get in writing). But, even if it is 12 months, there's a risk the house won't be built in time. If it's not built they won't let you assign a mortgage to it to stop you running out of time.

moneybunny123 · 16 April 2011 at 2:46PM

Hmmm, that's what I thought. To be honest, we only realised that a 6 -12 month transfer window may be a possibility because a friend mentioned it to us today. Do all banks/building societies do it? If not, does anybody know which do? We're currently with Britannia but their rates aren't very competitive and so we're shopping around. We just want to tie in for 3 or 5 years so we can budget, but daren't not have a mortgage for a year in case the rates jump up during this time.

womble12345 · 17 April 2011 at 6:19AM

It is 6 months with nationwide. Also a fixed deal lasts until a fixed date so if you buy a 2 yr fixed and then sell the house and take 6 months off the ladder you will only have got 1.5yrs on your favourable deal. Also when you sell your house you will have to pay your ERC which will be about 3% of your loan, you get this back again if you buy within 6 months.In short I dont think the rates at present will save you enough for the stress of this all.