Porting 2 mortgages to one property & getting buy to let?

Rob=S=

My GF and I are looking at moving in together and have found a house we like. Thats the easy part.

We wondering if we can port both of our mortgages over to the one property we have found.

• We both have our own property and are both on SVR.
• Both mortgages are with different lenders.
• The value outstanding on both mortgages would be 100% of the new property (just a coinsidence).
• And my GF's brother is currently living in her property and she is reluctant to kick him out. What would be the chances of getting a buy to let on this property aswell.

Hope I have explained the situation clearly enough.

kingstreet

Rob=S= wrote: »

My GF and I are looking at moving in together and have found a house we like. Thats the easy part.

We wondering if we can port both of our mortgages over to the one property we have found.

• We both have our own property and are both on SVR.
• Both mortgages are with different lenders.
• The value outstanding on both mortgages would be 100% of the new property (just a coinsidence).
• And my GF's brother is currently living in her property and she is reluctant to kick him out. What would be the chances of getting a buy to let on this property aswell.

Hope I have explained the situation clearly enough.

The line I have highlighted means you cannot hope to port both the products. A lender will require a first charge before it grants a mortgage. You would need two first charges and that's not going to happen.

In addition, you will not get a 100% mortgage to port either rate. The ability to port depends on you being able to satisfy the lender's current criteria, affordability and loan to value requirements.

Rob=S=

Many thanks for this info.

Do you think it would be a posibility to:

• Port my mortgage
• Get a second joint Mortgage with my lendor to top up the difference in new house price to 90% LTV
• Get consent to let on my Gf mortgage (with it being on SVR) or get a buy to let. Think she may have approx 60% LTV

Thanks again for quick responce.

kingstreet

You are misunderstanding the way porting and moving works.

When you sell your current property, you repay your current mortgage. You can't transfer a mortgage from one property to another.

What you will do is apply for a new mortgage on your new property with your current lender. It can be joint if you want joint. That's your choice.

If you satisfy the criteria and "qualify" and have the mortgage agreed, on completion day the lender will move the rate from the old mortgage over to the new one for the amount you are repaying. Any increased borrowing will be taken on your preferred choice from the lender's current range. You still have one mortgage. It will be split into two sub accounts to enable the lender to accurately calculate the interest and payments on each "tranche."

Check your lender is happy to port the rate from your sole mortgage to a new joint mortgage before you start paying fees!

CTL on your partner's property is subject to the approval of her existing lender, so it's difficult to say if this will be granted. First Direct won't do it at all. Others will want a fee and a rate increase. Others may charge nothing extra. How good's the rate? It could be worth remortgaging to raise additional funds to use as an increased deposit for your purchase to get you a better mortgage rate too.

You should also ask your existing lender if it will grant a joint mortgage while your partner still has her current property and mortgage. It may choose to treat the current mortgage like another credit commitment, taking the monthly payments off her income when establishing affordability for the new mortgage. It may allow the let property in the background without "taxing" her for it. It may have a restriction on the loan to value and won't do 90%.

TBH it isn't going to be possible for this forum to give you specific answers. You have to go to the horse's mouth as you have specific questions of specific lenders.

Rob=S=

Thanks again, I think I now understand the basics of porting a mortgage.

We now know what we need to speak to the bank about. We are making an apointment today with both banks for next week. Do we need to sort out if she can even get the BTL/CTL mortgage before we talk about porting.

Can you give us any advise as to the best way to approach requesting Consent to let or Buy to let. She is with Woolwich and has £65k outstanding, lived there over 10 years house is proberbly worth £90-£100k.

Her latest statement from Woolwich says she is on "a variable rate which is 0.95% Base Rate (currently 0.50%) to give a current rate payable of 1.45% aplies to this loan". This is a really good rate isnt it? Im paying Lloyds SVR of 2.5%.

I had not even thought about increasing the mortgage on her house for a better deposit. And I thought it was already complicated!!!

Hopfully we will be able to sort somthing out with the banks but I have a feeling they will want to give us a new product with new fees.

Many thanks.

kingstreet

You simply request CTL. There isn't a magic formula. Each lender has its own criteria and will agree or disagree as it sees fit. I wouldn't say it's the first thing you need to get, but it's certainly a consideration to be tackled early.

BTL means you'd have to change lenders and suffer a change in the rates. From what you've said, you'll lose a very good rate by moving her mortgage from Woolwich, but it's the overall picture which counts. The mortgage interest will be offsettable against the rental income for tax purposes, so an increase in the rate on the let won't has as big an impact.

The rate on the additional borrowing from Lloyds will be the big issue. Off the top of my head, you're facing about 6% for that, if you are going to 90% LTV for the purchase.

You might be better off with an independent or whole market broker. You're likely to find this becomes ever more complicated as you try to get an overview of the options with advice and information from lenders which is bound to be inconsistent and possibly inaccurate

Simon_gloster

If you decide you want to port Barclays as it has the lowest rate, as kingstreet said, their 90% would seem more attractive.

The CTL would have to come off SVR witb LTSB and you would be put onto a CTL rate, eapecially if you looked at further borrowing to increase your deposit.

It's all possible but many factors need to fall right for you.

kingstreet

Simon_gloster wrote: »

The CTL would have to come off SVR witb LTSB and you would be put onto a CTL rate, eapecially if you looked at further borrowing to increase your deposit

The CTL is required on the property mortgaged with Woolwich, if I'm reading correctly.

So he can port SVR with LBG, but at 90% I think the only option for additional borrowing is a two year fix at 5.99%. It certainly was in April when I last checked for an existing client considering the same thing.