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Can you have 2 Mortgages on the go at the same time?

Last post Tue, Jan 10 2012, 6:22 PM by Bristolred. 3 replies.
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  •  Tue, Jan 10 2012, 6:22 PM

    Re: Can you have 2 Mortgages on the go at the same time?

    Many thanks for your feedback.
    • Post Points: 5
  •  Tue, Jan 10 2012, 4:51 PM

    Re: Can you have 2 Mortgages on the go at the same time?

    If you sell your property then you will be required to redeem the mortgage in full. The lender is hardly going to lend you money against a property that you no longer own.

    It is also illegal to have a residential mortgage on more than 1 property. A residential mortgage can only be placed against your "Main Residence" and if you have moved then the old property is no longer your main residence and therefore the mortgage would not be viable anymore, this would only apply if you were not selling the property though, as stated before, the lender would want the mortgage fully resolved if you were moving to a new home

    As you want to continue with the current reserve account on the mortgage then I would suggest that you speak to your lender about "porting" your mortgage. This is where you will transfer your existing mortgage over from your existing property to another property once you have sold your existing property. Effectively the new property will carry the £10k mortgage from the old property and under the same mortgage account but a new side loan you would then arrange to borrow anything additional you would need to buy the house.

    This would mean you keep the benefit of the reserve account and can just set up a new product to buy the new house.

    You may even find that if you fully redeem your existing mortgage (when your house sells) and just take out a brand new mortgage product that you can either get a similar reserve account with another lender (plenty of them will do something similar, speak to a mortgage broker for details) or that your existing lender can offer you something more attractive for the new property

    Best option for this is to call your lender and ask about "porting" your existing mortgage or speak to a mortgage broker and see if he can suggest any similar options.

    • Post Points: 35
  •  Tue, Jan 10 2012, 4:40 PM

    Re: Can you have 2 Mortgages on the go at the same time?

    People do this regularly from what I have seen. Don't know how they do it, so you would be best to speak to an independent mortgage broker about your options. There are sometimes options to port the mortgage to move it to a different address and can sometimes take out additional borrowing, subject to criteria and terms. Zeb who posts on here, will know more about this, if he sees the post.

    However, surely it depends on the terms of your current mortgage. If you sell the house, you might have to pay off the mortgage with part of the equity. You are not thinking of taking out another mortgage on the current house, it will be a new mortgage on the new house. If so you will only have one mortgage.

    Suggest that you speak to the current mortgage company, if you are unsure about the terms of the mortgage and what you can or cannot do. I suspect they can answer your question, as to whether you can keep (port) the mortgage to a new address and then take out a separate mortgage with a different company, if at a more competitive rate. They may not allow you to do so and then you will look at other options.

    • Post Points: 50
  •  Tue, Jan 10 2012, 4:18 PM

    Can you have 2 Mortgages on the go at the same time?

    Hi

    Is it possible to have 2 Mortgages on the go at the same time?

    My current Mortgage doesn't have too much left to pay on it (under 10 Grand), so I want to leave this one going as it will still give me access to my 'Mortgage Reserve' overdraught option just in case of any money problems with the current economic strife going on.

    Me and the wife want to move so will be selling up and using the equity in the property to move to a bigger place.

    Can I just get another Mortgage out with another lender?

    If so by law do I need to inform my current lender of this? (they are going to know when I contact them with an address change anyway after we've moved!)

    Thanks in advance.

    • Post Points: 35