Suspending mortgage whilst renting

IFA

Hi All

Before I begin can I just say I'm not an independent financial advisor these are my initials so I know very little about mortgages

I need some mortgage advice, this is the scenario:

I have a flexible abbey mortgage at 0.5% above BOE for lifetime (very good deal in my eyes which I'd like to hold on to).

Looking to sell my house and rent for a while (to try and beat house price falls hopefully) then buy another house further down the line, maybe in a year or two?

I'd like to hold onto my mortgage and borrow more when I buy the new house. (and add gf onto it). I can take payment holidays up to 12 months but not so sure if Abbey would let me keep the mortgage with nothing secured against it (even though I'd have a fair bit of equity). The mortgage is actually close to being paid off with only 5k of the entire 60k to go, but would be raised by 40k with new house..

Has anyone had a similar problem and if so what was the outcome?

Are there better deals around with low set up fees?

Any advice would be very much appreciated..Thanks

Ian

minimike2

You can generally port your deal, but most lenders only give you six months to complete on a new property.

They will not let you keep a mortgage without security......else everyone would be doing it (and not paying them back!).

chappers

minimike2 wrote: »

They will not let you keep a mortgage without security......

No thats called a personal loan

The basic answer is no you can't.

Wouldn't be surprised if they didn't let you port your mortgage or only let you port the outstanding amount at that rate and you would have to pay a new rate on the extra you want to borrow.

minimike2

They wont allow a ported rate for a new mortgage in 2 years time tho.....or even 12 months.....I dont know anyone that allows porting of a rate for longer than six months after redemption.

Leon_W

With the Abbey Flexible chappers you can draw down at the mortgage rate so IFA could draw down, then port.

As you say though, without a house to secure it against (there may be a small concessionary time period) then it isn't going to work. A shame as it's a good rate by todays standards.

IFA

Thanks for the advice, sounds like I'll have to search for another mortgage deal then. Oh well swings and roundabouts..

Cheers

Ian

chappers

Leon_W wrote: »

With the Abbey Flexible chappers you can draw down at the mortgage rate so IFA could draw down, then port.

As you say though, without a house to secure it against (there may be a small concessionary time period) then it isn't going to work. A shame as it's a good rate by todays standards.

Sorry you are absolutely correct and I should know I have exactly that mortgage.
Didn't read the post properly, for some reason I thought he had a tracker.