Changing lender part way through conveyancing process

loveka

We are buying a house on a holiday let mortgage. All is going through in my name only.

We have now found a much better deal, 1% cheaper, without the £1500 set up fee. My partner applied for this mortgage, and got formal acceptance yesterday. So the mortgage will be in his name only. I can't have this in my name as I already have a holiday let mortgage with them.

Is it acceptable to change lenders like this?

Another question is that we are planning to stop working, and make the holiday lets our job. We will have 5 so the income is enough. I have just realised that both holiday let mortgages require a minimum income as well as proof of letting income. If neither of us have a job will be get a new deal from the same lender at the end of the fixed rate, which is 5 years?

Thanks. I am in a bit of a cold sweat situation as this had not occurred to me before now.

Mortgage_Adviser

Why are you not using broker for such complex purchase as Holiday lets?

AnotherJoe

"acceptable" to whom? As you wish to do it and it works for you then i dont see a problem.It may cause a slight delay of course.

re new deal in five years time, the answer is "it depends". Many lenders will just let you move onto a new deal "retention product" without asking further questions. If yours is one of these you should be OK. I wouldn't try to double guess what will happen in five years time.

loveka

Mortgage_Adviser wrote: »

Why are you not using broker for such complex purchase as Holiday lets?

It isn't a complex purchase. We used a broker for the first one, but as there are so few lenders who do holiday lets there doesn't seem any point. There are no 'broker only' rates for example.

This lower rate is a new rate from the lender, announced after I had applied for the mortgage. A broker would not have helped in that situation!

PasturesNew

The conveyancer works for you, to work on your behalf. Just an "assistant" - and they do what you tell them.

If you change lender half way through there might be additional costs/charges if you're not on a "fixed fee" basis with them, but those charges would only be to cover them having to receive/read any new paperwork from the 2nd lender.

So, there is no problem with you doing this whatsoever, but there might be a small additional charge as the conveyancer has had to do more/repeat work.

Put it in writing to them though, as well as phoning them - so they have a visible paper trail of the change you requested.

Edi81

The conveyancer also works for the lender so needs to be on the panel for the new lender.