transferable mortgages - not!

buytoletphil

Hi,

I have a buy to let mortgage with Scottish Widows and want to transfer it to another property I let out (currently with no mortgage) in order to sell the first property but keep the mortgage due to it's favourable rate. However, Scottish Widows have said that since they currenty do not offer new buy to let mortgages it is not possible to transfer the existing one, despite the terms saying it is transferable. Is this right?

I was wondering also whether, since Scottish Widows are within the Lloyds banking group, whether I could transfer the mortgage to a new Lloyds product (who do offer buy to let mortgages) on the same terms.

Any comment appreciated. Thanks

kingstreet

If you are talking about portability, that isn't a transfer of a mortgage from one property to another. It's a facility to transfer the rate from an old mortgage with one lender to a new mortgage on a different property with the same lender.

To do this, you first need to be able to satisfy the lender's criteria and affordability rules to qualify for the new mortgage. I would imagine if the lender no longer wishes to lend, this would prove an insurmountable obstacle.

It isn't possible to transfer a mortgage from one property to another.

I'd suggest a look at alternative options with other lenders. An independent or whole market broker may be a good first port of call.

dunstonh

I have a buy to let mortgage with Scottish Widows and want to transfer it to another property I let out (currently with no mortgage) in order to sell the first property but keep the mortgage due to it's favourable rate. However, Scottish Widows have said that since they currenty do not offer new buy to let mortgages it is not possible to transfer the existing one, despite the terms saying it is transferable. Is this right?

So, in other words, you are not looking to port the mortgage but to break the terms and convert it to buy to let? in which case, if they dont have a buy to let mortgage they cannot offer you on.

Scottish Widows operates under its own banking licence and not under Lloyds.

portability is about moving your mortgage to a new property on the same basis (i.e. both residential)

holly_hobby

Portability is about transferring an existing mortgage rate/product following the redemption of the original borrowing (and subject to satisfactory status checks), not the mortgage borrowing itself.

Hope this helps

Holly

buytoletphil

Thanks.

I am talking about porting the terms of the existing mortgage (which is a buy to let) to another buy to let on a different property but the problem is that the lender has stopped offering buy to lets and therefore have said I cant port despite me already having qualified and met all criteria for the original mortgage. Seems unfair as I am not looking for additional borrowing, I just want to switch the property being mortgaged. I suspect the bank knows what a good deal the mortgage I have and is waiting for me to sell up and pay off the mortgage.

holly_hobby

I know it must be frustrating, but if your lender has withdrawn from the BTL market (and are just servicing their existing book), there is little you can do other than seek an alternative provider.

If you spend some time with a whole of market broker they will assist and support you in sourcing the most suitable provider and product for your requirements (whilst the likes of Ipswich BS offer BTL mortgages on a direct application basis).

Hope this helps

Holly