Can we reclaim penalty charges on a Buy to Let Mortgage

rachehut

haras_nosirrah wrote: »

Can you please confirm as you have not answered

Were you trying to sell one buy to let and buy another buy to let?
Were you trying to sell the buy to let and buy a property for you to live in? Or were you trying to transfer the mortgage from the buy to let you were selling to another property you already owned?

Hi. No we didn't sell the property at all. We remortgaged it and wanted to move the mortgage to the next property we were buying.

haras_nosirrah

But why did you remortgage it to another lender when you were still tied in with that lender? If you didn't sell the property and still own it why didn't you cancel the remortgage when the port was unsuccessful and stay with your existing lender and avoid the fee? You could have got a new mortgage on the property you were buying and left the existing property alone

Did you use a broker?

lovinituk

rachehut wrote: »

Hi. No we didn't sell the property at all. We remortgaged it and wanted to move the mortgage to the next property we were buying.

Are you living in the property that has the buy to let mortgage?

rachehut

No not living in the property both houses are rented. It was a detatched house that we had returned to being two semi detatched houses. We had added a lot of value so wanted to remortgage them as two houses, using the increased value as the deposit on the next property. It is how you did it in those days. Mortgage companies knew that was common practice which is why the portability of the product was so crucial. Yes we used a broker.

haras_nosirrah

So you weren't trying to port the mortgage to a new property you were buying (e.g buying a property from someone else unconnected to you on the open market) you were trying to move the mortgage from a property you owned (a detached house) to another property you owned (having converted into two seperate properties)

If I have read it correctly then the port was never going to work. You can only port from a property you own to a new property you don't currently own but are buying

If I haven't read it right then you need to spell it out as your situation is very confusing

rachehut

We wanted to port from a property we owned to a property we were buying that was unconnected to us...a totally new property that we wanted to buy. The reason we didn't leave the mortgage where it was is because we had converted it into a pair of semis which then needed separate mortgages.

Thrugelmir

rachehut wrote: »

We wanted to port from a property we owned to a property we were buying that was unconnected to us...a totally new property that we wanted to buy. The reason we didn't leave the mortgage where it was is because we had converted it into a pair of semis which then needed separate mortgages.

However this would have been a factor in any decision.

using the increased value as the deposit on the next property.

As you quoted in your original post.

the "recent deterioration in marketconditions".

That was 2007 and the collapse of Northern Rock. Along with all that was happening in the mortgage funding market. The world had already started to change. The events of 2008 were merely the conclusion.

rachehut

OK. I'm not sure that I understand how your latest reply answers my question, but thanks for taking the time to answer.

Thrugelmir

rachehut wrote: »

OK. I'm not sure that I understand how your latest reply answers my question, but thanks for taking the time to answer.

The financial crisis first took hold in August 2007. The impact of which was to freeze the bank lending wholesale markets. No bank knew which other bank to trust. The first notable casualty in the UK was Northern Rock. The UK Treasury had to stand in and provide an emergency funding loan to keep the bank afloat. From there the rest was history.

You just happened to be conducting a transaction at the wrong time. Lenders appetite for risk vanished overnight. As is their right contractually. Commercial circumstances dictated their lending decisions.

kingstreet

FWIW most lenders will only port from a sale to a purchase, not a remortgage to a purchase.

I can't say whether that would be the case for this lender, but it may well be another reason why your port wasn't possible.