Mortgage Approved - pending conditions from EBS

[geri]

Hi,
We have just received Mortgage Approval from EBS for a new PPR.
We already own a Buy to Let property, and our current PPR.
We have mortgages with the EBS for both of these. The current PPR mortgage has a tracker rate.
One of the conditions the EBS have set out in their approval letter is a written undertaking that we will redesignate the tracker rate to Buy to Let rate.
When we first sought approval for the new mortgage, we hadn't decided whether we would rent the current PPR or sell, and we told the bank this. The plan now is to sell. Can they still insist on us reassigning to Buy to Let, and if we don't can they reverse the approval?
Thanks,
Geri.

 

[NorfBank]

Will the PPR continue to be your PPR until you sell it?
If so, the bank cannot designate is as a buy to let so your tracker is safe.
Your approval should be fine too.

 

[geri]

Thanks Norfbank
We are putting the current house on the market straight away. It may not have sold by the time we move into the new house though. Mortgage approval is not conditional on the current house being sold, just the rate changing from tracker to Buy to Let. We are not planning on renting it out -unless of course we have trouble selling it
Thanks,
Ger

 

[NorfBank]

You're welcome geri.
If you are buying a new PPR with the mortgage then EBS are within their rights to put your old PPR on a buy to let rate. You can only have one PPR mortgage, the rest will be on buy to let rates.

 

[geri]

Fair Enough - no chance of getting the tracker rate on the new mortgage though........

 

[danow]

Hi Geri
If it were me I would consider going to a different lender. EBS can have this condition as they are aware that you can't have 2 PPR's. If you were to mortgage the new property with another lender then this would not be an issue as the new lender will have your PPR as security.
I would suggest bank of Ireland, they seem to be the stronger of the two big banks which should mean better rates for you going forward.
D