Nationwide won't allow us to port our portable mortgage!

haras_nosirrah

Nationwides rules have changed on this one - I think it was in late 2010/ early 2011

It used to be that they would allow you to port the current mortgage and rent out the old house if you could show them a signed tenancy agreement and one months rent appearing in your account before applying for the port (which then used to bring up cries of - so I have to rent my home out and rent myself or move back to parents before I have a new home to move into - that makes no sense? (I did this myself in 2010 on my own mortgage and had to move back with family for six months to fit the criteria)

Now if you are renting your old house out you cannot port your mortgage - no if's no buts and not rate dependent. They do not want to be involved with accidental landlords and non experienced btl.

Might getting consent to let on your nationwide mortgage at your old house and buying on with a different lender be an option op (assuming you can get consent from Nationwide and don't have to use the equity for a deposit) alternatively you may have to ditch Nationwide completely and get a btl on yours and a different mortgage on the new house.

Options are available but you would be better speaking to an experienced broker with all your info to see the best way round it.

disclaimer I have been a broker for 6 years but please don't view the above as advice just potential options to consider - talk to someone with all details available to see what is actually possible.

haras_nosirrah

http://www.nationwide-intermediary.co.uk/news/article?id=2012-04-30

they have snookered the porting time window between redemption and taking out the new product which does kill off any chance of let to buy as porting now needs to be simultaneous

You will have to go elsewehere unless you want to sell OP

Thrugelmir

haras_nosirrah wrote: »

It used to be that they would allow you to port the current mortgage and rent out the old house if you could show them a signed tenancy agreement and one months rent appearing in your account before applying for the port

"Allow" is not a rule change. As was at the NW's discretion. The point at issue is the contractual agreement between the parties which is an entirely different matter.

The_Joneses

GMS wrote: »

Portability does not mean a switching of mortgage from one property to another regardless.

It is a new application whereby rate can be retained and any early repayment charges refunded.

If it was as simple as people think you could go bankrupt, have no income, have thousands of pounds of debts and wish to take the mortgage to a property constructed of cardboard with a wool roof.

All parts of the application need to meet the current criteria.

Often it looks baffling, i.e 300k mortgage at £1500 a month currently which is being maintained yet they refuse to allow porting to a 200k mortgage which will cost £1000 a month on a similar property. In that situation it appears to be a no brainer but criteria needs to be met. If not the lender will leave the applicant on the more expensive mortgage.

We contacted Nationwide and were told that we can port our mortgage to the new home, and borrow the extra we would need. We then told them that we would be renting out our current home, to which they said that in that case they would not allow us to port our current mortgage.

When we asked why we could not port our mortgage if we were not selling our current home, we were told that “it is just our rules – we will do everything we can to get you off your current mortgage”

We met the lending criteria and affordability - they had already told us we could port... until we mentioned renting our current home, then they changed their minds and said we couldn't.

Its this that i don't understand or think that they can do.

The_Joneses

BobQ wrote: »

Is Nationwide not obliged to provide such information under the industry's codes of practice or the law?

They are not providing us this info - does anyone have a copy of the mortgage conditions 2001?

The_Joneses

Thrugelmir wrote: »

"Allow" is not a rule change. As was at the NW's discretion. The point at issue is the contractual agreement between the parties which is an entirely different matter.

I can't find anything that states at NW discretion or anything even similar mentioned.

opinions4u

The_Joneses wrote: »

I can't find anything that states at NW discretion or anything even similar mentioned.

But I bet there is.

The_Joneses

opinions4u wrote: »

But I bet there is.

Our mortgage terms were 2001, and i believe this was the first time portable mortgages came about.

Maybe thats why the terms don't mention anything

GMS

The_Joneses wrote: »

We contacted Nationwide and were told that we can port our mortgage to the new home, and borrow the extra we would need. We then told them that we would be renting out our current home, to which they said that in that case they would not allow us to port our current mortgage.

When we asked why we could not port our mortgage if we were not selling our current home, we were told that “it is just our rules – we will do everything we can to get you off your current mortgage”

We met the lending criteria and affordability - they had already told us we could port... until we mentioned renting our current home, then they changed their minds and said we couldn't.

Its this that i don't understand or think that they can do.

What is the Loan to Value on the new property?

opinions4u

The_Joneses wrote: »

Our mortgage terms were 2001, and i believe this was the first time portable mortgages came about.

Maybe thats why the terms don't mention anything

I was underwriting portable mortgage with Halifax in the mid-1990s.

I doubt that Nationwide would have been that far behind.

They have given you a fairly clear reason though. If you are selling and buying, fine. If you are retaining your existing debt they're not interested.

Like it or not, they don't have to lend to you and the ombudsman can't make them.