My bank says that I cannot transfer the mortgage as it is a buy to let. What do you suggest?

Posted on 31 March 2016 by Mr Storey

I have a property which is a buy to let with a very good tracker rate mortgage. I now live in another area and want to sell the rental property and buy locally. My bank says that I cannot transfer the mortgage. I am fearful that I may not get a another mortgage due to my age. What do you suggest ?

Thank you for your question, via our ‘Ask the Expert’ section of our website.

You originally took your mortgage on residential terms and due to your change in circumstances this became a But to Let, with the advantage of a preferential tracker rate at the time. You want to port your existing mortgage and the bank will not let you proceed. This is a difficult position, but lenders are well within their rights to decline the porting of your existing mortgage, as what you proposing would be classed as a new transaction i.e. effectively a new mortgage contract with new terms and conditions and current underwriting.

On the figures you have provided, you have an income of £50,000 and you require a mortgage of approximately £140,000 which is less than 4 times income- so this may be feasible based on the details that you have provided. However, the actual term of the new loan may be restricted by your intended retirement age and your subsequent ability to continue to service the loan. All lenders will assess income and expenditure differently, so having the correct figures is imperative.

There are a large number of lenders available on the market but if you want to make this move then you might have to redeem your existing mortgage and proceed with your purchase with another lender.

To enable me to provide you with a definitive answer we would need your full financial details. I recommend that you contact a consultant at John Charcol who will be able to recommend the most suitable lender based upon your individual circumstances.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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