Porting a Nationwide mortgage during fixed period - any experience?

somethingcorporate

Hi,

Does anyone know how mortgage porting works for Nationwide when you are during the fixed period? We have 1 year left on our fixed mortgage and are looking to move to a more expensive house so will need to increase our borrowing.

Do they ignore the ERC and offer a completely new mortgage for the full amount or will they "top up" and keep the original term for the ported amount and a new term for the additional borrowing?

I have had a look around their website and I think it is the former but it is not clear what happens to the (very expensive) ERC we would have to pay if we paid back our mortgage in full to take a new one out.

Thanks for any help.

Thrugelmir

If you meet the lending criteria. Additional borrowing will be in the form of another product. The existing mortgage balance will be transferred across to the new property as is.

somethingcorporate

Thanks very much for your response Thrugelmir - that sounds like the absolute best case scenario.

Just the clarify - the ERC on the ported amount will still run out as per the original terms (i.e. in 1 years time?)?

Thrugelmir

somethingcorporate wrote: »

Just the clarify - the ERC on the ported amount will still run out as per the original terms (i.e. in 1 years time?)?

That's the normal porting process.

As porting is the transfer of existing terms and conditions.

rcorke

Hi. We ported and extended our mortgage borrowing about a year ago with nationwide when we moved house. We kept our orginial mortgage and fixed rate for the existing amount (although we did extend the length of the mortgage term to match the new one) so there was no erc to be repaid. We then got a new/ 2nd mortgage for the extra amount of borrowing at one of their current rates - just had to pay a product fee.

If you give their helpline a call they should be able to explain it all to you and may even be able to give you a rough idea of your extra borrowing capacity too.

somethingcorporate

Wonderful, thanks very much both

kingstreet

As an example, you will have one new mortgage for the amount you wish to borrow over the term you desire. It will be split into two sub-accounts.

Sub-Account A will be for the current mortgage amount, rate and remaining number of months of that rate.

Sub-Account B will be for the extra borrowing on a new rate and number of months of your choice, from the new product range.