Help! Complex mortgage situation

dalyoisin

Hi - Help!!

Briefly, we own two properties

Property A we rent and have a nationwide mortgage on a good term
Property B we live in and have a not so good mortgage term with natwest

Both mortgages are for a similar value, natwest is 4k more than nationwide, but property B is worth about 30k more than property A.

We want to sell property A, continue living in property B and only have the nationwide mortgage on the one property.

However... Nationwide have said that it is possible to port the mortgage, especially to a property with a higher LTV, but not to a property that we already own.

With that in mind is there anyone out there who have been in a similar position or has expert knowledge on whether this is possible or not????

Cheers

holly_hobby

They are correct - you may only (with the lenders permission and subject to full underwriting), port your interest rate, as its this and not the actual borrowing that you transfer, on a new purchase. (what you are proposing is actually a remortgage).

In this situation, you would sell property A and redeem your NWide mortgage (which may include the payment of an ERP). Remember to report any net gain for CGT purposes (following deduction of applicable allowances and reliefs), via your annual self assessment (under which you should have already been reporting your net rental income for inc tax).

You would remortgage property B from Nat West to a different lender. (again check what the ERPs are, and if having taken account of all fees associated with the remortgage/change of lender, it is still financially beneficial to effect the change at this point).

You would be best placed to seek the services of a whole of market broker to ensure you get the most competitive remortgage package (some include fee free offers, which are equal to standard transfer of lender, basic survey and legals).

Hope this helps

Holly