Porting mortage the answer?

joey298487

I need some advice we are with northan rock our property is worth about the same as our mortage.

we really want a house ...

could we port our mortage to another property? or would another mortage company want us.

we dont have anything really to put down on a house.

any advice would be appricated?

davetrousers

https://forums.moneysavingexpert.com/discussion/3154318

I think you need to take a long look at your financial situation.

kingstreet

joey298487 wrote: »

I need some advice we are with northan rock our property is worth about the same as our mortage.

we really want a house ...

could we port our mortage to another property? or would another mortage company want us.

we dont have anything really to put down on a house.

any advice would be appricated?

If you have no equity, you have no deposit for your next home and porting a deal won't solve that problem. NRAM will not let you go beyond the LTV you originally borrowed at. Sorry, best hope is to pay as much off the mortgage as you can each month.

joey298487

but if i found a property for the same value then this could be an option?

hcb42

You would still need the deposit now, the goalposts have moved

kingstreet

joey298487 wrote: »

but if i found a property for the same value then this could be an option?

No. It isn't.

You are now asking for a 100% mortgage. None are available. Your current lender lent you a maximum of 95% when you took out your current mortgage and will lend you no more than that for your next one.

Porting is moving the rate of your current mortgage, not the mortgage itself. You still have to qualify for the mortgage and satisfy the lending criteria which applies now.

joey298487

not sure about that i dont think they have. as long as i pay the fee's etc then whats the problem ?

what about we sold our house for 90k the property we want is 95k could we port 90k and pay the other 5k seperate?

hcb42

Is the property you want to buy £90K? If so you will need to pay the deposit on £90K. It doesn't matter you have been paying the mortgage off up until now for a higher amount - there are no more 100% mortgages to be had. (Thankfully!)

kingstreet

You are misunderstanding what porting actually is. It is the transfer of the current interest rate on one mortgage to the new mortgage you take on a new property.

The new mortgage is subject to the lender's criteria at the time. It is not guaranteed, or an entitlement. So the lender has to agree to give you a new mortgage before you can port the rate.

I suggest you contact NRAM directly to clarify your understanding of what they will and won't do. 0845 609 9610.

In the example you've given, you sell your home for £90k and repay your £90k mortgage and have to cover solicitor, agency and discharge fees.

NRAM will lend you no more than £90k next time and it must be no more than 95% of the price of the new property, or the loan to value of your original mortgage, so yes it is possible as you've now introduced a deposit of £5,000 into the equation. You'll need to cover the associated costs of purchasing a new home on top.

Thrugelmir

davetrousers wrote: »

https://forums.moneysavingexpert.com/discussion/3154318

I think you need to take a long look at your financial situation.

Thanks for drawing attention to this thread.

Puts a different complexion on matters.