Reactivating Nationwide Mortgage

Faloola_Chong

Just wondering whether anyone had come across this situation before? Moved out of previous house into a rental property and then sold house, thus paying off remainder of Nationwide mortgage, at end of July...and presumed that that was the end of the mortgage, which was a bit of a shame because it was one of their old 2.5% variable base rate/payment holidays/overpayment reserve ones

The landlord of my new place has now told me he may consider selling me this house, which I really like, so I went to the Nationwide to check whether I'd count as a FTB or a home mover from their point of view if I wanted to buy the place

I was told that in the first six months after paying off the mortgage it could be reactivated, I presume similar to the way you can port your old mortgage to a new property

So I'm wondering if this would be the same mortgage with all the favourable terms? Also when I paid it off I had built up quite a large overpayment reserve - would this be restored and possible to borrow back at the original rate?

Can't believe that that can be true - does anyone have any experience of anything similar?

Thanks

Yorkie1

Who told you this and was it in writing?

Sounds very unlikely to me.

MarkyMarkD

Some lenders will allow deferred porting of a portable product (often by up to six months). But it would be more likely if (a) you had requested this at the time of redemption and (b) if the product wasn't a ridiculously cheap tracker one.

Under most lenders' Ts & Cs porting is only guaranteed if it's simultaneous redemption and purchase.

All of that said, we ported a Barclays lifetime tracker mortgage product with a "gap" period (of less than six months).

Faloola_Chong

The staff in the branch told me this after quite some consultation, so I said I'd go in and see their mortgage advisor...Guess it looks like he's going to tell me something quite different. We'll see...

Yorkie1

Good luck.

kingstreet

I'm very interested in the outcome of this thread.

Please do post back and tell us what happens.

KarenBB

My understanding is that N'wide mortgages are portabel, if you have £50k outstanding on property A you can move it to property B subject to affordability etc at the same rate but you can change the term. If you redeem a mortgage again you can pick the moergage up again within 6 months - same amount, same rate but again you can change the term. In both cases any additional borrwing would be at whatever rate is available.

If your mortgage had a balance of £50K and you'd paid £30K back early, while the account is open you can borrowback the £30K increasing the balance to £80K. I'm pretty sure you can only port the amount that you redeemed so to be able to have access to the overpayments you'd made in the past so in the above example. If you redeemed when the balance was £50k that's how much you could port but if you borrowed back the £30k then redeemed virtually straight away you'd be able to port £80k.

Good luck with buying the house

Faloola_Chong

Thanks for that

In that case I'm probably stuffed because the final balance on redemption was only £20K (although if I had borrowed back the overpayments it would have been well over £50K)

Oh well

Faloola_Chong

OK, so KarenBB is completely correct

It seems that the mortgage is portable for up to six months after redemption (this cutoff applies to the completion date rather than date of arrangement)

It is only the final balance that is portable, not any overpayments

They didn't mention any lower limit on the amount you could port, but I was speaking to an accounts manager rather than a mortgage advisor (although I might as well have spoken to the mortgage advisor as every time I asked a difficult question he had to be consulted!)

Also, when did their lending get so lax? When I was looking for a mortgage in 2004 they turned me down because I wanted 3.72x my salary. Now it seems they will lend near to 5x my salary or our combined salaries :shocked:

DVardysShadow

Faloola_Chong wrote: »

... Also, when did their lending get so lax? When I was looking for a mortgage in 2004 they turned me down because I wanted 3.72x my salary. Now it seems they will lend near to 5x my salary or our combined salaries :shocked:

They have decided that based on your conduct of the mortgage you had that you are better lending prospects than people off the street. They are keen to port your mortgage and happy to give you a high income ratio which they would not give someone they had no experience of. Don't overstretch yourselves with finance you cannot sustain

Faloola_Chong

I wouldn't mind so much if that were the case, but I get the same results if I anonymously put the same salaries into their online quote system

Don't worry, I have no intention of borrowing that much :eek:

I'm looking at 4.3x my salary/3.3x joint and I'm doubtful even about that