In need of some help

fattony

Hi

I'm in the process of moving house, I've had an offer on a house accepted and mine will be on the market within 2 weeks - a bit backward your thinking but my in laws are buying my next house for us, the reason they are doing this is because it puts us in a great position and not restricted in anyway.

Now the snag, once we sell our current home we will port the C&G mortgage to the new property and pay the in laws back, C&G have said they would not allow us to port the mortgage for 6 months, I believe this is to do with money laundering, is this normal practice?

The in laws have the money in the bank from inheritance and where the money came from can be proved, the purchase price is £250k and the sale price we hope will be £180k, C&G have agreed to allow us to port and borrow the additional money but I don't want the money tied up in the new house for 6 months.

Any advice?

Simon_gloster

Thats correct. Porting is a simultaneous transaction and once your the new owners you cannot raise funds with most lenders for at least 6 months. If you ported there and then what rate does the lender put you on in the meantime?

Your right to port also may be lost as some weird threads on here about lbg (c&g) new terms lately. 6 months is a long time these days on lenders lending policy.

Thrugelmir

A lender will not allow you to port a mortgage to a property you already own.

fattony

Looks like ill be stuck then, I'm on the variable rate currently 2.5%, I asked what happens during those 6 months and was told I carry on paying the same, I'd like to think once the sale of my house completed they would give me my equity? They can't hold that for 6 months?

C&G will allow me to port the mortgage to the house we bought for cash.

kingstreet

On the sale of your property, the solicitor repays your mortgage and pays to you any residual equity you had in the property. This money goes nowhere near your lender, so this;-

I'd like to think once the sale of my house completed they would give me my equity?

does not apply in any way.

If C&G will allow you to then take a mortgage on the new property and apply the rate from the old one, you need to know what is the maximum gap you can have between the two.

You know you can't do it for six months minimum, but what's the maximum? If it's only three months, for example, you need a rethink.

fattony

That's not so bad then as once we sell we can give the equity to the in laws

Simon_gloster

If you took the mortgage out pre 11/2008 you have 12 months to port, after that 8 weeks. The 2.5% porting rights as I mentioned are determined by the above date and the day the money advanced for you main mortgage.

fattony

Simon you clearly know your stuff about C&G but you've left me a little confused, the mortgage was taken out in 2007, could I be abpain and get you to run it past me again

Thanks