Wanting to port mortgage but possible gap?

bclark

I reckon I know the answer to this but thought I would check with those who know. I am looking to move and want to port the rate for the existing part with Nationwide.

It's now looking possible that in order to get the house we want we may have to go into rented for two or three months. I assume that if there is this gap between properties then I won't be able to port the mortgage?

Thrugelmir

What rate of interest are you currently paying?

bclark

Currently we have a lifetime tracker at 2.18%

Thrugelmir

bclark wrote: »

Currently we have a lifetime tracker at 2.18%

Have you approval to port the mortgage?

bclark

Thrugelmir wrote: »

Have you approval to port the mortgage?

Yes it's a portable product, we haven't done a formal application for the new mortgage yet but I believe there aren't any issues about porting the existing. Maybe there will be though which would obviously make this issue null and void.

holly_hobby

Porting if agreed, is normally on a sequential basis - however they may be happy to be flexible with you.

If they charge any ERPs when your current mge account is closed down (and you enter rented), they may as some lenders offer (and if you return to them within a short defined period) offer to refund the ERP either wholly or partly (regardless of whether the permit the port or not is granted).

Of course, when the time comes their product range at the point of application (which will be full underwriting as a new mortgage), may be more attractive than the current rate your considering porting - which may lead you to chose an alternative product in any event. .

Have a chat with them, see what they can offer is really the only advice, given as it will be a business (not contractual) decision of their own.

Hope this helps

Holly

EMac_2

You can typically port a mortgage up to 6 months after sale. The lender will want the ERC paid but will refund it if they agree to the port and new purchase. Best of luck

Thrugelmir

bclark wrote: »

Yes it's a portable product, we haven't done a formal application for the new mortgage yet but I believe there aren't any issues about porting the existing. Maybe there will be though which would obviously make this issue null and void.

They could decline any additional lending. I suspect NW would be happy to lose you as a customer.

bclark

Thrugelmir wrote: »

They could decline any additional lending. I suspect NW would be happy to lose you as a customer.

Do you reckon? I bank with them and am looking to borrow an additional £100k yet my LTV would still be just under 65% so I don't think I am the worst customer in the world despite having a low existing rate.

Thrugelmir

bclark wrote: »

Do you reckon? I bank with them and am looking to borrow an additional £100k yet my LTV would still be just under 65% so I don't think I am the worst customer in the world despite having a low existing rate.

NW is looking to increase lending margins. That's what is driving the issue. Has nothing to do with you on a personal level as a customer.

With BOE base rate remaining low, now for 4 years. The NW is losing money on your mortgage and ones similar.