Transfer of Existing Mortgage Product

Posted on 16 January 2012 by Ted


Hi is it possible to transfer my mortgage to a mortgage free property I own? The reason for this is I want to sell the house I am living in and move into the other property for a year to avoid incurring capital gains.  I don't want to lose my current mortgage as it is a term tracker at 0.29% above base rate. After a year the plan is to sell and buy again using current mortgage. Hope this makes some sort of sense!  Thanks in anticipation.

Ted

I am afraid that you will be extremely disappointed.  Where lenders apply a portability option this is usually only available when you buy a new property.  For example Coventry Building Society state: The ported mortgage scheme(s) can only be used to purchase a new property, not to remortgage a property you already own.

The only way to be sure is to first check your Mortgage Offer and any Terms and Conditions booklets that came with it.  You may find that either the mortgage is not portable, the terms are clear and you can't transfer the product or the terms are ambiguous, in which case you may have a good chance of convincing the Lender that it is in their interests to quietly allow the transfer. 

Personally, I think it will be highly unlikely that they will allow a transfer because the product you have is far too good.  It might be that you have to follow through their complaints process and end up complaining to the Financial Ombudsman Service.  There is no cost to you for this and whilst there is no guarantee they will find in your favour it could well be worth the effort.

Peter

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