Porting residential mortgage and refinancing property to buy to let

AndyDufresne

Hi,


I have a house that I am renovating. In a couple of years I would like to buy a new house to live in, and rent out my old house. I don't want to sell as the rental market there is good and want to keep it as an investment. I intend to do a 'let to buy' transaction where I remortgage the residential mortgage with a buy to let, which frees me up to get a new residential mortgage on a different house without declaring the repayment commitment on the first house. 

I am in a 5 year fixed rate deal, so I'd have to pay the ERC if I remortgage before then. Is it possible to port this mortgage to my new property, and refinance the old one using a buy to let mortgage, thereby avoiding the ERC? The loan amount and property value would be roughly the same as I would be moving to a cheaper area. Would the 'let to buy' transaction still work this way or is it against the porting T&Cs? I couldn't find anything about this type of arrangement online.

kingstreet

Possibly. It would depend completely on the lender concerned.

Many lenders don't like to port from a remortgage, but some will. You just have to hope yours is one of the few.

AndyDufresne

kingstreet said:

Possibly. It would depend completely on the lender concerned.

Many lenders don't like to port from a remortgage, but some will. You just have to hope yours is one of the few.

My lender is Natwest, would you happen to know if they accepting porting from a remortgage?

kingstreet

AndyDufresne said:

kingstreet said:

Possibly. It would depend completely on the lender concerned.

Many lenders don't like to port from a remortgage, but some will. You just have to hope yours is one of the few.

My lender is Natwest, would you happen to know if they accepting porting from a remortgage?

No. Even if I knew if they had done so previously, I'd still ask now to ensure there had been no policy change since the last time.

AndyDufresne

Can anyone else share any insight into whether or not this is possible?

Annisele

NatWest's porting guide suggests maybe. But I wouldn't go further than maybe - you're asking what NatWest's critiera are going to be in a couple of year's time, and I doubt even NatWest could tell you that.

gih

If it's not possible to port, one option to consider is to ask Natwest for  "consent-to-let" for the remainder of your 5 year deal, then convert to a buy-to-let mortgage when that finishes.

Possible useful thread: https://forums.moneysavingexpert.com/discussion/6018297/consent-to-let-natwest

We had looked into doing this with Nationwide, we were told we'd need at least three months of rental income from the rental for it to be considered self-financing, otherwise it would be considered a liability when applying for a new residential mortgage. 

Best thing to do is speak to a mortgage advisor at Natwest.

kingstreet

gih said:

We had looked into doing this with Nationwide, we were told we'd need at least three months of rental income from the rental for it to be considered self-financing, otherwise it would be considered a liability when applying for a new residential mortgage. 

Best thing to do is speak to a mortgage advisor at Natwest.

Nationwide has now changed that if you do the LTB with The Mortgage Works and the new residential with Nationwide the property to be let will be ignored.

gih

kingstreet said:

gih said:

We had looked into doing this with Nationwide, we were told we'd need at least three months of rental income from the rental for it to be considered self-financing, otherwise it would be considered a liability when applying for a new residential mortgage. 

Best thing to do is speak to a mortgage advisor at Natwest.

Nationwide has now changed that if you do the LTB with The Mortgage Works and the new residential with Nationwide the property to be let will be ignored.

Unfortunately the Mortgage Works wasn't an option for us, as we live in NI which The Mortgage Works doesn't cover.  Useful for somebody else I'm sure though.