Porting Mortage with Negative Equity

adilnparkar

Hi,
I was wondering if someone could advise me:-

I have a Nationwide mortgage of 107K on my current property and want to move to a new property worth 180K.
Nationwide are ok with porting the mortgage with 5% deposit.But There is something that I cannot understand:-
If I sell my current house at 95K and then port the previous mortgage on the new one, there is a loss of 12 K on the current mortgage- What happens with this loss? is it then incorporated in the extra lending that I take and how is the mortgage then underwritten.
Is it the case of the how much is the perceived value of the new house and will the extra borrowing with the old not more than 95%, or will I have to pay the 12K loss upfront?
Many Thanks

maninthestreet

Unless NW are offering negative equity mortgages, you will need to pay them the £12K negative equity.

vegasbaby100

as above will need to pay the extra cash!!

Mrs_Bumble

You are porting your existing mortgage balance onto the new property, the value of the property allows this.

Their is no debt as such on the old property, as it is moving with you and to allow this to happen they have allowed the 5% deposit.

So your whole mortgage balance of £107K moves with you with further borrowing of £64K.

This is my understanding of the unique Nationwide criteria at present for existing customers who fit the bill for this to happen. So I assume that you have squeaky clean credit history, income to cover the total borrowing, it isn't a new build, no other credit committments?

So as I understand it you only need the 5% deposit for the new property, plus of course all associated fees.

Well I think that it is it! it is late! It's been a long day:)

Ring Nationwide and check that this is how the scenario pans out:)

adilnparkar

Thank you all for the replies.
Mrs Bumble, I think you have made it very easy to understand this. Many Thanks, thats exactly how nationwide are explaining things to me !!