First Active Mortgage Advice

jk2447

Hi All
I'm one of the lucky few who ended up with a First Active Mortgage tracking at 1.1% above the base rate.

I want to move home but obviously am concerned about loosing this impossible rate. I want to rent out my current home to buy one closer to my mother-in-law but have not got a clue how to go about it, especially as I don't want to loose the deal I have on my present house.

Can anyone advise me please? I'm guessing I'd have to swap my current mortgage to buy-to-let?

Any help would be much appreciated,
Thanks

jk2447

OK so I've found out that a CTL consent to let might be my first port of call. I'll ring First Active on Tuesday to see how I go about that but I believe there may be time limits on these. Does anyone know a bit more about them please? Could I negotiate a three year CTL for instance with a view to selling at the end of it? Apologies if I'm being naive here. If I were to rent my current house out I could over pay the mortgage by a £400 a month say, assuming I got the realistic rental figure I have in mind.

I can afford to run both houses, I just don't want to loose the 1.1% melarky on this house. If I would loose this I would possibly stay where I am now.

Any help would be much appreciated.

Dave_Ham

Ok, my personal opinion is that you need to consider what you are asking.

You have a great rate, you know that and so do the bank. They are not going to easily bend over and allow you to turn a personally, advantageous residential proposition into a commercial entity with the vision of making money (the fact you will overpay is irrelevant)

I am not as knowledgeable on how First Active will treat this, although typically the high street banks are allowing fixed rates to stand and then be moved onto considerably higher buy to let or consent to let propositions.

I would suggest you call them without account details initially and get their policy on this to give you time to consider.

Let us know how you get on...

jk2447

Thanks for the advice. I will let you know how I get on. I'll explain to them the main reason for our move is due to my mother in law's circumstances, the over payment on the house we're in now was just so I could say the rent would more than cover this mortgage, but I know what you're saying. Cheers

Thrugelmir

jk2447 wrote: »

Could I negotiate a three year CTL for instance with a view to selling at the end of it?

There's no negotiation you'll be offered terms of lending.

First Active are part of RBS and no longer lend. So no new deals, you'll need to remortgage. A few months back they were offering 12 months maximum on CTL

jk2447

Cheers mate, that is fair enough. Thanks for your input. I might end up having to stay where I am I think

MoneyJuggler

I'm on a good interest rate with First Active as well.

From previous posts on here, I think someone said they had CTL for 12 months, for (something like) £200 admin fee.

I'm also hoping to move, and from initial enquiries with them,as I understand it, they will port the existing interest rate to a new property, but it will be treated as a new mortgage, so will (can't remember which) be either RBS or Natwest product, which means full checks etc as if was a new mortgage.

Any additional borrowing would be on a different, higher rate, so in that situation there would be two rates on the different parts of the mortgage.

One option, if the figures work for you, might be to use the First Active mortgage on the new property, then take out a new Buy To Let mortgage on your existing property.

Good luck, and please let us know how you get on!

jk2447

Money Juggler, thank you for this information mate! If they can offer me something similar, I will be over the moon I really will! The prices of my current home, and the one I'm wanting to go too are practically the same. We're only trying to move on account of my mother in law being recently widowed. I'll ring them this week and let you all know what they say. We had a baby yesterday so its been a busy week ha ha

MoneyJuggler

Congratulations! Hope you are getting some sleep .

We are trying to do a similar thing, move to a similar priced property, so will be really interested to know how you get on, and to confirm I understood it properly.

Good luck!

MoneyJuggler

Just wondered how you got on, so thought I'd give this thread a bump!

poppy868

I too have a 1.6% tracker rate BTL mortgage with First Active/RBS/Natwest. They have told me on several occasions I can have extra lending but the rate for the new bit would be at the current rate. Fair enough. 5 weeks ago I was told my mortgage was fully portable and so accepted an offer on my investment flat and have spent 6 weeks finding another. When I rang at the end of last week they now told me that could see what I had been told from my notes but that their current policy was not to allow me to port my rate but that I could reapply for another mortgage! They also said they were no longer prepared to entertain the idea of additional funds being secured at a higher rate leaving my original borrowing on its existing rate! Someone from the extra borrowing department suggested I complain as the knock on effect of their wrong information will have incurred me (and the potential buyer) lots of money in legal fees etc. Any ideas? I do not have a copy of my original agreement so can't check out the small print myself...