Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I own a property that I bought on a five year fixed residential mortgage. My circumstances changed and I moved in with my girlfriend and we then had a baby. I got consent to let from the bank who approved it and we’ve happily rented for the past two years whilst tenanting the property.
We now want to buy a new property for our expanding family – we enquired with Nationwide about our eligibility to borrow more and were provisionally told we could borrow much more than we wanted. We put the flat up for sale, accepted an offer and found somewhere new to buy knowing we had a product with portability.
NOW the bank is telling us we can’t port the mortgage whilst consent to let is on the property. So our option is to kick our tenants out and risk breaking the chain, have the chain be broken and try to sell again whilst the place is empty, or press ahead and pay the £10k ERC. I don’t understand why the bank would want us to have an empty property and higher risk of defaulting? We are on a very high rate as it is (4.89%) so imagine they would be happy to keep us on this rate.
Should I try and fight this with the bank, as it was pointed out to us we couldn’t borrow more whilst the property was let but we were never told it couldn’t be ported; or should I tell them the property is no longer let with immediate effect (knowing the tenants are leaving in 5 weeks time) to try and keep the chain from falling apart?
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