Mover mortgage advice please

[ash693]

I would appreciate some advise on how to discuss a investment mortgage with a bank.

We have a home and investment mortgage with the same bank for approx. 11 years.
Our home mortgage is no longer in neg equity and our investment mortgage is approx 40K (based on other similar properties currently selling in the area) and this is slowly decreasing with the property prices growing outside the capital.

Our investment mortgage is currently on interest and part capital and we are 2 years into a 5 year agreement with the bank on this. Was just interest only. We have never defaulted on a payment and thankfully have never been in arrears.

We want to desperately move out of the area we are in and essentially trade up as the family has grown over the years and also to be that bit closer to work. Best option would be to sell both properties but we can't afford to carry the neg equity with us.

I have talked to another bank and they are willing to give us a mover mortgage based on our salaries and savings but since the investment mortgage is in neg equity they won't touch this.

How can I talk to my current mortgage bank and tell them we are selling our primary residence (and going with another bank!) and will keep the investment mortgage until the time to sell in the next 6-12 months hopefully.

I am worried they will decide to change the terms of the mortgage to full payment and then we won't qualify for the new mover mortgage!

Can they do this?

Thank you!

 

[44brendan]

Unfortunately you may have some difficulties with your proposal. While your HL and BTL loan are separate loan facilities your mortgages are likely to cover "all sums due". I.e. Existing bank have the right to demand that you pay both mortgages off before they release the charge on your HL and they will probably insist on this. Also, the reduced payment arrangement on your BTL loan is likely in place to facilitate you meeting your full P&I repayments on the HL. There is no other logical reason why the bank would allow you this arrangement and it would likely cease if you tried to move your HL facility elsewhere.
You can certainly speak to them about the proposal but I doubt very much if they will let you go ahead with it.

 

[ash693]

Thanks for the reply - am I better to stay with my existing bank? I have asked them already if they would let us carry the neg equity into a new mortgage ie sell both houses and take out new mortgage and they said they would look at it for us....I should say this is the same bank that took our tracker when we fixed a number of years ago.