Two seperate mortgages on same property

AJMurpy

Hi All, I am currently sitting on Nationwides BMR (1.99% above base) as I am very happy with this rate.
My current home is valued at £120000
We Owe approx 98000.
We have recently viewed a house we really like which is valued at £175000. I am obviosuly very happy will my nationwide rate as it is effectivly a lifetime tracker, I have checked nationwides Ts&Cs and the mortgage I have does contain a "portability" option. Can anyone help me to understand how this could work in my scenario? Could I move my exisitng mortgage of £98000 and my excellent rate over to the new property and take out an additional mortgage for around £55-60k? Is this possible? This way I would be paying the bulk of the mortgage on my current rate and the remainder on another rate.
I do know If I have to get a new mortgage with nationwide I willl rever to thier "SVR" rate which is definatly not as attractive as my current rate!
Any help provided would be much appreciated!!

Thanks All
AJ

Thrugelmir

When moving you'll need to apply for a new mortgage. Your application will treated as a new one so you'll go through the standard underwriting procedures. Portability means that the terms of your existing mortgage will be transferred i.e. the interest rate. Lenders do not have guarantee portability.

I suspect you'll fail to meet the criteria for the transfer as your LTV is far too low on the new property.

kingstreet

Portability requires you to sell the first property, repay the mortgage, buy a new property with a new Nationwide mortgage and transfer the rate to that.

Are you selling your current home?

If you are, you apply to Nationwide for a new mortgage. If you qualify and satisfy the lender's criteria you will be able to port the rate to the first £98k. The extra money you need to borrow will be offered on one of the lender's current products which will revert to the higher rate when it finishes.

Effectively, you'll have a single mortgage split into two sub-accounts, not two mortgages.