Porting mortgage then buy to let

tupelotomemphis

Hi everybody, i wonder if i could ask for some opinions.
Im buying a new build, completion date 2nd Aug, porting my mortgage to it and keeping my current property and have a buy to let mortgage in place. The only potential problem is my broker arranged the Paragon buy to let knowing my completion would be in August, but they only offer for 2 months and it was arranged back in April, so weve had to go back to them and tried to extend it but they will only do it for a month on a month to month basis.
This could stitch us up if we go back in July to ask for another month and they say no, we wouldnt have much time to arranged a new buy to let.
What do you think we should do? Could we redeem our residential mortgage(Santander) before porting a month before actually moving? Could this be done or are there better easier options?
You help would be very welcome.
Thanks guys!:)

Wh05apk

You could redeem the Abbey mortgage early, their criteria for porting is:

"Where redemption of the existing mortgage and purchase of the new property is not simultaneous, providing the purchase of the new property completes within three months of the redemption date, the existing product can be ported to the new mortgage and any early repayment charge will be refunded, as long as the customer takes the previous product for the full amount to their new mortgage.
On redemption of the existing mortgage the early repayment charge is paid in full and a refund will be made on completion of the new purchase, as long as the product is ported. If the new mortgage is less than the existing mortgage, the early repayment charge refund will be a proportionate amount."

The downside being you would have to pay the penalty which would then be refunded, would this cause problems in terms of the deposit?

tupelotomemphis

Thanks for your reply, its a flexible offset and the offer says theyll waive any redemption fees.
Can you see any other problems, with Paragon allowing this etc?

Wh05apk

You should check with your broker, as it is a "let to buy" some lenders will insist that the purchase is also simultaneous, although if they can see the situation, and see that you have an onward purchase (preferably exchanged on) they may consent.