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Potable mortgages and house ownership

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Hi all,

I have a mortgage with Alliance and Leicester at 1.49% on a house we are selling this summer.

I would of course like to transfer this mortgage and rate across to a different house.

Alliance and Leicester have just told me that they will only do this on a new purchase not on a property I already own.

Firstly, is this normal ? Secondly what do I need to do in order to rebuy the second property ? If I can raise the money for the outstanding mortgage can I pay it and then transfer the property to a spouse/partner then rebuy it back. It all seems like unnecessary hoops to go through.

Cheers
Rolf

Comments

  • kingstreet
    kingstreet Posts: 39,269 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Portability allows you to transfer the rate from a current mortgage to a new mortgage on a new property. You have to satisfy the lender's criteria at the time of the new application.

    I do not know of any lender who allows portability in the circumstances you have set out.

    It was designed to allow people to move house while continuing to enjoy the benefits of their current product and avoiding the early repayment penalties which would normally be involved.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • CloudCuckooLand
    CloudCuckooLand Posts: 1,905 Forumite
    Pretty normal. Its not porting, if you need it to clear a 2nd house's mortgage. That's more akin to a re-mortgage.

    Apart from the solicitor/land registry paperwork costs, you'd also have to wait 6 months to buy it back, as lenders get iffy on a money-laundering pretext, for quicker re-sales.

    The other mortgage was good enough when you took it out...ok, its not such a treat as the A&L one, but c'est la vie.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
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