Porting with GMAC Help Needed

rsutt1

Good day all,

I am looking into the possibility of moving house,

I currently have a mortgage with GMAC with a balance of £84,000
My property is due to be marketed at its valuation of £124,950

I am hoping to sell for around £122,000
Leaving me with £38,000 minus fees

I am looking to buy a property in the region of £100,000 and use £25,000 as a deposit therefore requiring a £75,000 mortgage.

I have sent GMAC a 'Porting Enquiry' and they have advised me that they are compiling 'KEY FACTS' and an Application form for the porting.

What I want to know is....
What exactly are the 'KEY FACTS' and with a slightly iffy credit rating what are the chances they are going to refuse me the port despite the fact I would be borrowing less as a result.

My fixed term on the mortgage finished some time ago so I am on base rate + 1.25% will I keep this rate or will they try to tie me in again with a larger rate?

Any help and advise would be great.

Many Thanks

Ryan

_Andy_

rsutt1 wrote: »

What I want to know is....
What exactly are the 'KEY FACTS'

Key Facts Illustration (KFI) - the quote and detail about the mortgage product

and with a slightly iffy credit rating what are the chances they are going to refuse me the port despite the fact I would be borrowing less as a result.

Not really any point speculating.

My fixed term on the mortgage finished some time ago so I am on base rate + 1.25% will I keep this rate or will they try to tie me in again with a larger rate?

AFAIK it would be the current rate you have.

Senior_Paper_Monitor

GMAC are certainly not actively looking for additional business.

Porting is at their discretion (as for any lender) and there is a danger they will decline (particularly on what is not an attractive rate to them) - however they may take the pragmatic view that it reduces their exposure (although not necessarily as it will increase your LTV from 67% to 75%).

Worth a try but you are correct to suspect that this may not happen - or that a higher rate will be imposed.

The Key facts are simply the required document, in a standard format, which gives you the basic facts about the mortgage they MAY offer you.

You appear to be 'taking approx 10K out of the deal' - why ? and could you leave it in to reduce the LTV you need (might help swing the deal).

rsutt1

I was looking to keep 10k back to modernise the new property, the idea being to purchase something thats 'in need of tarting up'

This way I could purchase a property that is larger than my current property and therefore allow me to upsize by downsizing.

There was a perfect example only last week.

A repo in need of moderization was on the market for £99,950
The house next door sold 2 months ago for £140,000 the houses are identical.

For what needed doing to the repo could have been done with 10k and therefore would have valued the property at similar to next door (140k)

This is my plan

Many thanks for your input

Conrad

With the iffy credit rating there is a good chance they will decline - apply and find out. They aren't in the business of lending now afterall they have more or less no funding as no one is investing in mortgages as you will know from the last 2 years news (the credit crunch).

A couple of lenders are considering those with a lower credit rating, such as IGroup, but the underwriters need to demonstrate a loan to you meets the responsible lending test, otherwise you might sue them later if you fall behind.