Trouble porting mortgage with Nationwide, when buying but not selling

Louise64

Hello,

I wonder if anyone has come across a similar problem to ours.

We are very close to exchanging contracts on a new property, but sale of our flat has not yet been finalised. Therefore we are moving 'chain free' by getting the biggest mortgage we can and all savings. We have got a mortgage offer that includes porting our existing rate and a big new mortgage (which does not have an early repayment charge so we can pay alot off when the flat sells).

Nationwide insist the porting is done simultaneously - so old mortgage paid off same day as complete on new house. That is fine for us, but no one seems to understand mechanism this should be done by because it does not involve joint sale and purchase.

We have the money in the bank ready to pay old mortgage off. One person at Nationwide told us we could do it in branch on the day we complete, someone else says it has to be from solicitors. Our solicitor originally refused to do this, and now will but will charge us £195 plus vat.

This seems a lot of money for something we could do ourselves, but we really need to fit into their porting rules and don't want any problems on the day - like them saying it has to clear or anything.

Any suggestions at all would be really so appreciated. It gets so stressful without this! Many thanks.

holly_hobby

Simultaneous means that you complete both sale and purchase on the same day.

Nationwide have made this a condition of their permission to port your current mortgage product, which is completely at their discrection.

You are able to redeem your exising mge with cash ?, and at the same time complete on your new home and commence your new mortgage, with your ported mge product.

Surely, the easiest way is to deposit the cash with your solicitor (which will be held in the client account), a couple of days before completion is due - he then both redeems the existing mge with them, with an immediate drawdown for the new.

Whats complicated ? (apart from his fee - meanie ! )

Holly

Louise64

Thanks for this Holly. I've been struggling to get my head around it, especially as we'd been saving by overpaying this original mortgage so have drawn that back until it is paid again to Nationwide for the porting - trying our best to make the most of the best deals - but so much forwards and backwardsing!

So you are right we are paying it off with cash. It was just difficult to believe the Nationwide would not accept the money from us on the day, when it is sat ready in a Nationwide account, but us have to pay the solicitor for the pleasure. I suppose we will just have to think of the money we will eventually save from the porting as balancing out the £240 the solicitor will get.

holly_hobby

Difficult to reason, if the money is actually already being held and has been saved in an account with them.

But they may want it via the Sol, for other audit/transaction purposes - although it will be their own legal dept that instruct LR to remove the charge on your (to be) old house, do remember to check this has been actioned, as its not been unknown for lenders to forget to complete this final stage !

Hope this helps

Holly

Thrugelmir

Louise64 wrote: »

So you are right we are paying it off with cash. It was just difficult to believe the Nationwide would not accept the money from us on the day, when it is sat ready in a Nationwide account,

The solicitor will have requested drawdown of the total funds to complete the purchase well before the day of completion of the purchase.

So will also require the funds to be deposited with them to redeem your existing mortgage.