House purchase / porting mortgage

[briantherobot]

Morning all,

We have been living in our new house for only 2 months and have the gut renching feeling we have made a big mistake and want to explore the possibilities of moving on as soon as possible if we can.

Question is would anyone know if there is a minimum time that we are required to own the property before selling again from a legal or finance / mortgage view?

If we were to sell up realistically it would be a buy and sell within a 3-4 month period..

Thanks in advance.

[anonymous-user]

Depends if your mortgage is portable, there are no legal obligations to stay at all.

[TooMany2cvs]

briantherobot said:

Question is would anyone know if there is a minimum time that we are required to own the property before selling again from a legal or finance / mortgage view?

A buyer may have a problem getting a mortgage on it if the previous sale was within six months of their purchase.

Apart from that, no restriction except for the hit to your wallet.

[craigjm]

There is conflicting information around this all over the place with some CML guidelines being interpreted as some as meaning you can’t refinance within 6 months. I guess you need to speak to your lender as the policies may be different from lender to lender.

Sounds to me like you might be rushing into things though. You don’t want to make the same mistake twice because you rush to get out and maybe end up somewhere else that isn’t optimal for you.

[briantherobot]

Thanks all.
Yes our current mortgage is portable.
To make things easier and quicker we wish to sell asap and move in to rented until we sort ourselves out.

As mentioned above I'm reading that most lenders guidelines require the property to be owned for 6 months.

Hopefully they are guidelines only and we can sort something!

[Sarnie]

briantherobot said:

Thanks all.
Yes our current mortgage is portable.
To make things easier and quicker we wish to sell asap and move in to rented until we sort ourselves out.

Porting means taking one mortgage to another property.

If you were moving into rented, that's not porting the mortgage and you will incur your ERC.........

[craigjm]

If you are moving to rented you are not porting you are repaying your mortgage and will incur the early repayment charge and have to apply for a new mortgage when you get the new house.

Edit - Sarnie beat me to it

[briantherobot]

Understood. Thanks.
Are there lenders out there that will lend on a property owned for under 6 months?
Or will it be cash buyers only able to purchase from us?

Thanks

[Sarnie]

briantherobot said:

Understood. Thanks.
Are there lenders out there that will lend on a property owned for under 6 months?
Or will it be cash buyers only able to purchase from us?

Thanks

Only one I can think of...............you would be reliant then on your buyers using that one lender or being cash buyers.........

You'd potentially be better off renting it out for 6-12 months (after getting Consent to let from the current lender) as some lenders won't lend where the property has been owned less than 12 months, so renting it would get you out of that period.......and into year two of your mortgage product where the ERC may drop......

[craigjm]

What’s so bad about it that you didn’t notice on your viewings which means you can’t live in it for a year or so while you find somewhere you really want to live? Surely moving into rental and then renting out your place to get round the time issue will be even less satisfactory?