Porting a Nationwide BMR deal

dave76

Lots of porting questions I see on these boards but all slightly different details so would just like to clarify...

I was on a 2 year tracker from the end of 2007 which then reverted to the BMR of 2.5% which is currently a great rate (until intrest rates start to rise). Is this still likely to be portable?

Currently owe 130k with 20 yrs left and looking to move with perhaps an extra 30k needed. As I understand it, if porting is possible, I could port the 130k at BMR and take the extra 30k at current rate (say 4.5% ish). If the new one was fixed for 5 years would that tie me in to the BMR (and thus intrest rate rises) for 5 years also?

Do the payments bring down the new mortgage capital first like if you have credit cards with different rates applying or are payments split between the two sub-accounts?

Sounds like porting is the way to go or am I missing something??

Cheers

The_J

Yes porting the BMR is possible. Yes the extra borrowing would be taken on whatever rate they have at the time. No if you took a 5 year fix the BMR would remain penalty free.

Payments bring down the capital as if they were two separate mortgages (i.e based on rate + term).

dave76

The_J wrote: »

Yes porting the BMR is possible. Yes the extra borrowing would be taken on whatever rate they have at the time. No if you took a 5 year fix the BMR would remain penalty free.

Thats good to know. So what happens in say 2 years if, hypothetically, rates were to rise to 5% and BMR is say 7.5% (lets hope this isnt the case ) - could I just remortgage the BMR part onto another deal or would I then have to remortgage the whole lot and pay any early repayment fee on the fixed part?

The_J wrote: »

Payments bring down the capital as if they were two separate mortgages (i.e based on rate + term).

So are payments split in the proportion of the two parts? In this case 130k + 30k so payments would be split 81% to the big portion and 19% to the small portion?

The_J

You could remortgage the whole thing to another lender and pay the ERC or remortgage that individual part with Nationwide.

Essentially yes for the second part. If they are the same term, both will end up on 0 at the end of it.

dave76

great, thanks for the info! Good to be armed with this stuff before going in to see them

Thrugelmir

dave76 wrote: »

Sounds like porting is the way to go or am I missing something??

Cheers

To get you off the low rate NW may decline your new mortgage application..........

micadd

hi, first timer so be kind to me
my 5 year fixed ends in June 2013 so i will fall onto the BMR if i do nothing,
so does this mean i can sell my flat (for cash?arguements sake it sells for £152K), buy a new home using the cash from the flat combined with a £70k inheritance to buy a £222k house and still only pay the payments for the £152k BMR mortgage.
its harder to type this out than it sounds in my head

regards
Mic

holly_hobby

You port the rate, not the borrowings it applies to.

Any application to port an existing mge rate, is subjec to full underwriting on the new mge (even if less than that originally held before the application to port).

The permission to port any protable product, is at the complete discrection of the lender - they can decline the application for business reasons.

Hope this helps

Holly

micadd

sort of helpfull, mildly confusing lol
so i would need to ask the lender if i can secure the mortgage against a different property that would be of higher value and they could say no if they wanted for whatever reason, so best to ring them and ask really (think i just answered my own question lol)

holly_hobby

You're confusing matter unnecessarily here.

Its simple ...

1. You submit your new mge application (with a request to port your existing product to an equal amount of the new borrowings)

2. The lender considers your mge application, and will perform standard underwriting on the total mge reqd to pch the new home.

3. If you pass underwriting, and they agree for you to port your current mge product (subject to LTV criteria), this will be applied to the same amount of borrowings it related to, on repayment of your current mge, with you able to chose a product from their curent portfolio for any residual balance.

4. Porting is discrectionary, so yes, the lender may decline the request.

Hope this helps

Holly

kingstreet

You are making a whole new mortgage application for a new mortgage on a new property. If that is accepted, you'll be able to port the rate from the old mortgage to the new one, if portability is a feature of the old one.

On the day your old property is sold, the old mortgage is repaid by the solicitor and the new one starts. That's why porting works the way it does. You can't transfer a mortgage from one property to another, other than in very unusual circumstances.