Can I get a second mortgage on the same property?

scuttydug

I am in the process of moving home and exploring all the options to see what sort of mortgage I would be able to achieve.

Currently I have a mortgage for approx 140k (with RBS) in a property worth 225k. This mortgage is with my father and myself due to circumstances when we bought the property. The mortgage is portable however we cannot extend borrowing on it and because he is approaching retirement we cannot take out another joint mortgage.

My question is: Can my wife and I take out a separate mortgage (for example 100k), port the existing mortgage with me and my father's name and effectively have £325k to purchase a new property (approx 75% LTV).

My thoughts are that it may have to be with the same lender (RBS) for their security on the asset but has anyone had a similar experience?

Thanks in advance for any advice.

kingstreet

You cannot transfer a mortgage from one property to another. When the current property is sold, the mortgage is repaid.

You will be taking out a new mortgage on the next property.

Portability is the ability to move the rate from an old mortgage to a new one with the same lender if you qualify for a mortgage from that lender based on current criteria etc.

Contemptuous

No, you can't do what you're proposing.

Does your father have to stay on the mortgage? Would a transfer of equity to put the property into yours and your wife's name be a possibility?
The mortgage isn't portable, just the rate. Are you on a fantastic rate you want to keep, or is there a large penalty for ending the mortgage?