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Let to Buy and avoiding early repayment charge
shazchip
Posts: 29 Forumite
Hello!
I would appreciate some clarification if anybody can help!
I currently live in a property with a residential mortgage on it. I want to buy a new house, which would become my main residence, and keep my current house as an investment.
I would appreciate some clarification if anybody can help!
I currently live in a property with a residential mortgage on it. I want to buy a new house, which would become my main residence, and keep my current house as an investment.
I know that I can convert my current residential mortgage to a buy to let mortgage, and take out a new residential mortgage on new house. However as told by my current lender today, by converting current residential mortgage to BTL mortgage, I don’t avoid paying the early repayment charge - I’d still have to pay it even though I’d have two mortgages with them, which I think is bizarre.
I also know that if I were to sell my current house and simply port my existing mortgage to new house, then they’d waive the ERC.
What I am unclear on is, can I port my current residential mortgage to new residential mortgage with current lender and avoid ERC, and then take out a new BTL mortgage with a totally different lender for the current property?? Or is that not allowed because I’m not actually selling the house? I’m a little confused!
Thankyou in advance 
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Comments
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Get a Consent to Let from your lender, when the term ends remortgage on a buy to let mortgage1
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@shazchip Depends on the lender (as some will only allow porting if the property is being sold), but yes it is an option as long as completion on both mortgages is simultaneous or very close together.shazchip said:What I am unclear on is, can I port my current residential mortgage to new residential mortgage with current lender and avoid ERC, and then take out a new BTL mortgage with a totally different lender for the current property?? Or is that not allowed because I’m not actually selling the house? I’m a little confused!Thankyou in advance
I recently had a similar let to buy case where HSBC was happy to port (though they would only allow it to be processed direct) and the original property was re-mortgaged on to a buy to let. Just give your lender a call and ask or get in touch with a mortgage broker.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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Thankyou for your advice!0
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