Remortgaging with "Same" Mortgage?

UsernameAlreadyExists

This may appear a silly question, but I'd like to ask it anyway.

I currently have a Natwest One mortgage account.
I am about to receive an inheritance, and it's going to push the account well into "credit".

What I want to know is if I choose move house such that after the move, I will still owe less than my currently facility. Do I need to jump through all the "mortgage/credit check" type hoops?

I appreciate that I'll need to involve a solicitor for all the conveyancing, and the transfer of deeds etc, and of course the lender will need to ensure that they're prepared to lend againt the new property, but do I already have a "mortgage in principle" (if that's the correct term?)

In short, what will the logistics of the move be given that I want to stay with the same lender as I like the offset mortgage system as it works well for me?

Thanks

Gary123456790

Hi,

Sounds like you are talking about 'porting' where you move house but keep the same mortgage product.

It is basically the same as a new mortgage application, you will need to provide payslips, etc as normal.

When you say the account will be in 'credit' will you be inheriting more than the oustanding mortgage amount?

Gary.

UsernameAlreadyExists

Gary123456790 wrote: »

When you say the account will be in 'credit' will you be inheriting more than the oustanding mortgage amount?

Yes, exactly that. and even after moving house, I'll still not be wanting to borrow more than I already can (facility is 80K, I currently owe 16K). I'll be looking at owing £~75K when I'm done moving.

Re payslips etc, I have my salary paid into the account and have been "overpaying" and eating away at it for over 10 years. I can't see why they'd need to credit check me, but if that's the way it is ... then so be it.
Thanks !

kingstreet

Not that it's a major issue, but a remortgage is a new mortgage with a new lender, to replace the old one on the same property.

You are looking for a new mortgage on a new property. It's a purchase by a subsequent purchaser, if you want the terminology for the correct type of product.

You are applying for a whole new mortgage, so current lending terms and criteria will apply, as will the usual status checks, although as Gary said, you may be able to "port" the rate from the old mortgage to the new one.

UsernameAlreadyExists

Thanks for that too.

re "port" the rate ... that won't apply because the rates are tiered according to facility value against property value. 50% or less is the lowest rate, and I'll be well under that, as I am already now.

So in short ... it seems like I just have to "apply" and do it all over again!

I didn't want it all to change because I'd wanted to keep all my "banking details" (sortcode/account number, Direct debits etc, salary payments) exactly the same (if this makes sense)! It's my primary (only) banking account, and changing it is going to be a pain.

kingstreet

UsernameAlreadyExists wrote: »

re "port" the rate ... that won't apply because the rates are tiered according to facility value against property value. 50% or less is the lowest rate, and I'll be well under that, as I am already now

Yes. So you'll port a rate only available under 50% LTV to another mortgage on another property at under 50% LTV, so it should be fine. Unless I'm missing something here?

UsernameAlreadyExists

kingstreet wrote: »

Yes. So you'll port a rate only available under 50% LTV to another mortgage on another property at under 50% LTV, so it should be fine. Unless I'm missing something here?

Oh I see what you mean. I wouldn't have referred to that as "porting" in-so-far as it's not as if I'll taking it with me from one to the other. I see it as the same entitlement I would have had anyway even if I'd come from somewhere completely different.
Perhaps my interpretation of the term "porting" is wrong in this context. Symantics!

kingstreet

Yes. You "port" the rate from the old mortgage to a new one. You don't port the actual mortgage. That is repaid when you sell. To port, you have to qualify for the new mortgage first though, as does any new borrower.

UsernameAlreadyExists

I've just phoned them as I was going to get them to send me the necessary paperwork for a new mortgage application etc, but it turns out that they can facilitate a "house move" and retain the existing mortgage acount etc. Bonus! *rubs hands.

(I shouldn't have been so lazy and phoned them first, ooops, sorry for wasting your time )

kingstreet

Can you update the thread with what procedure they expect you to follow, application-wise etc., as this is unusual?

The security of the first property is discharged on the sale and a new one is required for the new property and it's always interesting/useful to know when a lender does something different. Current account mortgages are always a bit weird.

Ta.

UsernameAlreadyExists

Yes, I shall do.
They'd said I need to contact them when I have the specific details of the new property to kick it all off as they'll need to "underwrite it" (her term, she used it on the phone) etc. They'll also be able to provide the mortgage in principal etc.

I mentioned that I'd not be wanting to borrow any more than I already can, and she didn't seem to bat an eye. I guess they're more interested in the legalities/securities of the change as they've already approved me for the facility I already have - so it definately seems more a formality than a new application.

On the flip side, I did bring my facility down to below the 50% threshold a while back in order to qualify for the lowest rate ... and this was done literally in minutes over the phone but I distinctly remember them saying that should I want to push it back up again - then all the credit checks etc would need to kick in. Which makes sense!