Top-up mortgage to move

lour29

Hello
I am looking for a little advice regarding moving home.
We bought our house in 2007 for 145k, we could probably get 125k for it now and we have approx 125k outstanding on the Nationwide mortgage. We are currently on the BMR which is a great rate.
There is a property we are interested in buying which we could probably get for 180-190k.
I have £30k in savings (an inheritance).
I have a 'fair' credit score due to a few late payments on a credit card, on the experian report they show as '1's and everything on there shows as 'satisfactory', are these defaults?? I have paid off my overdrafts recently but have approx 7k left on credit cards. My husband has a personal loan for a vehicle with approx 10k outstanding.
Do you think we have a fair chance of getting an additional mortgage to be able to move?
Our combined income is approx 55k
Sorry if I have not supplied enough details!
Thanks

kingstreet

What do you plan to do with your current property?

Late or missed payments are not defaults. This is registered when you miss three consecutive contractual monthly payments. However, a number of late payments may be enough to see an application declined. It depends on the lender.

According to its affordability calculator, on your incomes Nationwide would normally lend £232k, assuming a decent term, no dependents and the loan having repayments of £250 per month. This assumes you pass the credit score.

However, when you factor-in the existing mortgage if it is to continue, the maximum falls to £94k. So we come back to the question at the outset. What are you doing with the current property?

lour29

Thanks for the response.
Sorry, I didn't make that very clear did I?
The plan is to sell our current home and hope to cover the outstanding mortgage amount. May try to port our current 125k mortgage and borrow the additional 30k ish in order to purchase the new house.
Thanks

kingstreet

Right. So this is all about keeping the existing rate?

When you sell, you repay your existing mortgage. You apply to Nationwide for a new mortgage for the full amount you need to buy the new property. They agree to "port" the rate from your old mortgage to the new one for the first £125k you have on your current mortgage, with any additional borrowing offered on on of its current products. You then have a single mortgage made up of two sub accounts.

Porting does not confer a right, nor a guarantee of a new mortgage. It will be subject to the usual checks and you may not be accepted due to the credit issues you mentioned.

Perhaps consider an agreement in principle from Nationwide to see if they will lend to you again.