Porting without selling existing home

romantix

K_S said:

@romantix Yes, you are indeed looking at a 'let-to-buy' with Lloyds doing the residential p thank youurchase and a different lender doing the BTL remortgage. From what you say, it looks like Lloyds is ok with it but I would definitely try and get it in writing before relying on it. Just to be clear, it's not uncommon with other lenders, I had a let-to-buy client who ported his mortgage with HSBC and re-mortgaged his current flat to a BTL. HSBC were fine with that, they would only do it direct though and there were a few quirks with regard to affordability calculations.

The main risk with porting is that you need to meet the lender criteria (affordability, property, etc.) at that point in time in the future, so if (for whatever reason) you don't then you may end up with no option but to stay put or stump up the ERC. Unfortunately, I see this more often that I would like to, especially in the last two years when lenders radically changed criteria due to the pandemic!

Unless I've misread your post (in which case just ignore this sentence), it looks like you want the predicted rental income to be considered for affordability? Very few lenders do that with a let-to-buy, so do make sure Lloyds does and what exactly they need for that to happen. 

Thank you - really clear and in line with my thinking. You've understood my writing well. I've taken the decision to go to 5y to limit risk on ERF in the event lending affordability changes, or anything else for that matter - worse case scenario!

Thanks re point on getting in writing, I will do that!

No, not interested in predicted rental income to influence affordability, rather offset my let to buy mortgage so that it doesn't negatively affect affordability for the new residential mortgage.

Thank you again for your insightful and informative post!