Should we re-mortgage?

razza100

I am having problems trying to secure a mortgage with a 90% LTV on a new build property. Nationwide have sent me a Lending Certificate (for what it's worth) and should give me a definitive answer by tomorrow. I'm not holding my breath.

I currently have a mortgage with NRAM - Mortgage is at £185k and balance is circa £160k. I have been making substantial overpayments and will continue to do so.

In the likely event that our new mortgage is unsuccessful and we have to stay at the current property - should I re-mortgage onto a different lender then if the situation arises where we want to move house in the future, we should be able to extend my existing borrowing with my new mortgage lender rather than being stuck with NRAM who no longer offer deals?

Would this be a worthwhile exercise?

razza100

By way of an update I was unsuccessful with Nationwide so for the time being appear stuck at my current property. As I asked above, do you think it would be worthwhile re-mortgaging to a different lender to build up some goodwill should a future house move be on the cards?

Thanks.

_Andy_

There is no such thing as 'buildling goodwill'. Any move would involve a new application

razza100

Think you've missed the point Andy - if I moved to another lender and continued to make fairly significant over payments for 3 years, I'm sure they would look upon me more favorably (as they can see how my account has run) than if I was a brand new customer... The exact same principle applies when getting a personal loan - much quicker, smoother process going through you own bank who keep a close eye on your account than a random third party lender.

Thrugelmir

How much a lender will advance you is dependent upon their lending criteria at the time.

Maybe worth improving your LTV before applying for a remortgage. As you appear to be over 85% LTV at the moment. So your options may be limited.

_Andy_

razza100 wrote: »

Think you've missed the point Andy - if I moved to another lender and continued to make fairly significant over payments for 3 years, I'm sure they would look upon me more favorably (as they can see how my account has run) than if I was a brand new customer... The exact same principle applies when getting a personal loan - much quicker, smoother process going through you own bank who keep a close eye on your account than a random third party lender.

I think you've missed the point. If you 'port' your mortgage, it's treated as a new application. The overpayments won't factor in at all. You'll be scored/checked exactly as per a new application.

Spangled

_Andy_ wrote: »

I think you've missed the point. If you 'port' your mortgage, it's treated as a new application. The overpayments won't factor in at all. You'll be scored/checked exactly as per a new application.

I agree with Andy here. I've tried to port my current mortgage - a rather nice lifetime tracker of BoEBR+0.99% - to a new property but HSBC won't lend me enough. They will only let me port 2.5 times my current income and won't even let me port my current outstanding balance.

I think it's cos they want to force me off my current deal although they say it's due to the fact that I now have an extra child and my missus is a SAHM. I've run my current and mortgage accounts impeccably and have made substantial overpayments but no dice.

As such, I'm having to take out a new mortgage with a new lender in order to finance the house move.

Mortgage banking history, IMO, counts for zilch.

Thrugelmir

Spangled wrote: »

They will only let me port 2.5 times my current income and won't even let me port my current outstanding balance.

You are applying for a new mortgage not porting your existing balance.

Spangled

Thrugelmir wrote: »

You are applying for a new mortgage not porting your existing balance.

Absolutely. I was reaffirming Andy's point that there are no guarantees with porting. Just because you may have had a mortgage with a lender for X number of years doesn't count for anything if you move house - it's a new application.

We're all in agreement...