Question about portable mortgage and LTV

randomnut

Hi,
i'm just wondering, I know my mortgage is portable so I could for example take my existing nationwide 160k mortgage and rate to a new house.

Would the new property need to be the same LTV? Or could it be 100% and be OK?

My situation is that I bought a 193k house a year and a half ago, on a deal where I pay 5% deposit, housebuilder give me 15% on a interest free loan payable in 10yrs or on sale of the property, and I mortgage 20%.

Due to circumstances I need a larger house, so my only option really is to move up north where it is cheaper. Given that I have only been paying into the mortgage for a year and a half, I haven't built up a huge amount of equity, and have around £160k outstanding. I also can't imagine that the value has gone up a lot in this time and in fact may have gone down?

If the house I want to buy is around £160k, would the lender typically be OK with that or would I still need to provide a large cash deposit for it?

thanks

Thrugelmir

The term port only applies to the terms and conditions attached to the mortgage. So you'll still need to meet the current lending criteria as you'll need to apply for a new mortgage when moving house. There's no possibility that you will obtain a 100% LTV mortgage.

The mortgage market has changed significantly in the past couple of years. May well tighten considerably more in the months to come.

kingstreet

You can't transfer a mortgage from one property to another.

If you can satisfy the lenders affordability, lending criteria and loan to value requirements for a new mortgage on a new property, you may be able to move the rate from your old mortgage to the new one.

For a standard purchase, you're likely to need a 10% deposit as a minimum.

randomnut

Cool OK thanks that makes sense