Is this possible?

Craig_Grant

Hello

Does anybody know if Nationwide would allow us to port our SVR rate to a new house?

We have £112,500 left on our current mortgage (Nationwide SVR 2.5%) and a realistic sale price would be between £115k and £120k. So little or no equity in the house at the moment.
We have around £7k of savings towards a deposit so far.

The reason we'd like to move is because we've just had our first child (6 weeks ago) and we'd like to move to the village I grew up in as I enjoyed growing up there so much and it also has a very good primary school we'd like our son to be eligible for in a few years time. This village is also about 30 minutes closer to both my wifes and my place of work so would save us a decent amount in fuel as well as cut a fair bit of time off of the front and back of our days which would mean spending more time at home...the benefits of living closer to work are obvious.

We'd be looking for one of the cheaper houses in the village that would cost a fair bit less than we'd be able to borrow (if we had the right size deposit).
So what we'd want to port the £112,500 at the SVR and then borrow and additional £30k to £40k on top at whatever rate they would give us.

Does this sound possible or do we need to have a 10 - 15% deposit saved for the full purchase price?

Thanks in advance for anh help.

Craig

kingstreet

You port an old rate to a new mortgage, you can't port an old mortgage to a new property. You'd need a deposit, money for fees and the ability to satisfy the lender's criteria for a new mortgage at the time of the application.

You apply for a new mortgage for the amount you need, then the old rate is transferred to the first part of the new mortgage with the extra borrowing being taken on the products available today.

AFAIK Nationwide doesn't allow porting of SVR, but I could be corrected on this.

kingstreet

I've just checked for you and Nationwide offers 95% mortgages to existing borrowers moving home. The rates range from 5.75% to 7.59%, so if you did proceed and are unable to port SVR you will see a significant increase in your mortgage costs.

I suggest you speak to them.

Craig_Grant

My wife has just rang me to say she has had a chat with Nationwide. They've said they will do a 95% mortgage and that we can have the first £112,500 at the SVR. They also advised us to ask for our overpayments back so we increase the amount we take with us on the SVR. We then can have the other £40k at 6.79% (based on 5% mortgage).

Thank you for your help Kingstreet

Crinz

Craig_Grant wrote: »

My wife has just rang me to say she has had a chat with Nationwide. They've said they will do a 95% mortgage and that we can have the first £112,500 at the SVR. They also advised us to ask for our overpayments back so we increase the amount we take with us on the SVR. We then can have the other £40k at 6.79% (based on 5% mortgage).

Thank you for your help Kingstreet

This doesnt sound like the situation I would expect to happen and Im sure most others in the business would also find it a bit odd that they are letting you port the SVR. The usual purpose of porting is to assist you in avoiding ERC's

phone 3 times and see how many answers they give you

kingstreet

Crinz wrote: »

phone 3 times and see how many answers they give you

It may be the Carslberg Export, but that made me laugh.

neverdespairgirl

Crinz wrote: »

phone 3 times and see how many answers they give you

If you lay all the economists in the world end to end you won't reach a conclusion.

Crinz

neverdespairgirl wrote: »

If you lay all the economists in the world end to end you won't reach a conclusion.

very true but when it is a simple policy explanation that is required rather than an opinion on something I would hope the information would stack up. For the OP's sake if nothing else