A new mortgage service from Irish Permanent allows borrowers to move house without the need to find a buyer for their existing property.
The Chainbreaker mortgage is intended to help those people who are finding it difficult to sell their home, or are reluctant to sell because of low property values in their area, or even if they cannot afford the fees involved in the sell and buy process.
The service allows borrowers to turn their property into a rental investment and take out a new mortgage on the home they would like to move into. Once borrowers have found a new home, they can remortgage their existing property with the lender as a rental property, while concurrently taking out a new mortgage on the new property. However, unlike a conventional let to buy loan they can keep their original mortgage with Irish Permanent still lending the maximum advance on the new property.
Mike Healy, manager of Irish Permanent, said: ‘Chainbreaker puts customers in a really strong position. They can move to the home they want, when they want to, and gain an investment property at the same time.’
By remortgaging their first property borrowers can release up to 80% of the equity in the property, to a maximum of £400,000. This money can then be used as a deposit on the proposed new home.
The maximum loan to value for the new mortgage is 95%.