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Retaining a mortgage when moving.
itsdavidbarker
Posts: 3 Newbie
We have an offset tracker mortgage at .75% above base rate. We'd like to keep the terms (the .75%!) of this mortgage when we move.
We are selling our house to build another on a wholly owned piece of land which has planning permission.
Upon selling we will have a sum of money that will be able to pay off the mortgage and leave a surplass that will require about £60k more in order to build the house.
Will we be able to retain the mortgage we have by switching the collateral of the loan from the house to the land which is worth approx £200k?
The reason for this being that all the tracker mortgage rates now are substantially more than our .75% Barclays one.
Thanks
David
We are selling our house to build another on a wholly owned piece of land which has planning permission.
Upon selling we will have a sum of money that will be able to pay off the mortgage and leave a surplass that will require about £60k more in order to build the house.
Will we be able to retain the mortgage we have by switching the collateral of the loan from the house to the land which is worth approx £200k?
The reason for this being that all the tracker mortgage rates now are substantially more than our .75% Barclays one.
Thanks
David
0
Comments
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It's unlikely. Portability allows you to move the rate from your old mortgage on your old home to a new mortgage on your new home, subject to status, criteria and loan to value.
As it's unlikely a mortgage will be granted in the conditions you describe I'm pretty sure your current deal will die when you pay off your current mortgage.
I suggest you ask your lender, as this is very specific to them and you.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.0 -
Hi thanks for that. I am most grateful to you.
I live in hope!0 -
The issue for you is that a standard mortgage will not be suitable. As you intending a self build project. So you would need to source finance from a specialist lender.0
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I did wonder about that. Thank you for taking the tme to respond. It seems I'm hoping for too much!0
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