Transfer of Mortgages

TwistedPsycho

Evening everyone.

We are currently in the process of selling our property to relocate to a new county. The mortgage is only just in positive equity after 5 years with NRAM and is fully up to date, never missed a Direct Debit payment to them and never had a problem with them (their Cover Me insurance is another story though).

My other debts are a different story though. I am currently half way through a 7 year Debt Management Plan (the "unregulated" one, not an IVA) so I suspect that my credit file is so horrendus that I will not get a new mortgage with a new provider. [For the record we got the mortgage before I went belly up and onto a DMP]

When I mentioned to NRAM previously that we were thinking of moving, they said we can simply move the mortgage to a new property. Before I start asking them questions and getting them asking equally complicated questions back; is it really as simple as transferring the property to a new address, or do they have to undertake a new credit check and find that I will probably no longer be credit worthy?

Obviously I would prefer us to remain on the property ladder even if it means we can not upsize for another 4 or 5 years until my credit file recovers (I reckon I can be paid off on the DMP by end of 2012 if we move - because of the savings I would make in commuting; so start getting credit worthy around 2015/16?).

any thoughts on the matter would be appreciated.

TwistedPsycho

I really hate bumping my own threads, but with the board being so busy I hope its just a case of whoever knows the answer simply missed it

Richard_Webster

Lenders will vary but I would expect most of them to apply their present status criteria (earnings, credit worthiness etc) to a mortgage application to "port" to another property and if you don't meet them then they will turn you down.

They will also apply their present loan to value criteria so if you borrowed a high percentage that may not be available on the new property.


So worth asking, but don't be surprised if they turn you down for one reason or the other.

silvercar

When I mentioned to NRAM previously that we were thinking of moving, they said we can simply move the mortgage to a new property

At the very least, they will want to value the new property, to ensure it offers security for the mortgage. So this is a very simplistic statement. They may mean that you can continue with your current deal on the new place, but it would still mean a mortgage application etc.

TwistedPsycho

Thanks for your thoughts; it sounds like I will be coming off the property ladder then due to a Building Society placing big black marks on my file every two months because I am in a DMP (strangely they are the only one of 4 doing so!)