Portable mortgage when moving city.

Watham976

Hi - we are currently with nationwide on a 5 year fixed mortgage . We are looking to relocate and I am finding it very difficult to work out how difficult it will be for our family.

We would like to know how hard it will be to transfer our mortgage once we are both in employment in the new city. it is worth bearing in mind it is not commutable from our current address and we will either be renting or staying with family). Will we have to wait 1-2 years to prove our jobs are long term or will the bank happily take our new permanent contracts as ok straight away?

Thanks

kingstreet

Nationwide will lend to someone in a probationary period and at a push may even lend for a relocation where you have only a written offer and confirmed start date.

Remember, you can't transfer a mortgage from one property to another. On the sale of your current home, the existing mortgage will be repaid. On the day your new mortgage starts (this will be subject to the usual checks) you can "port" the rate from your old mortgage to the first part of your new one, with any increased borrowing offered on one of Nationwide's current products.

You'll therefore have a mortgage which contains two sub-accounts to reflect the two different rates within it.

There is no guarantee that you will qualify for a new mortgage, you'll be applying for a new mortgage just like anyone else, but by porting you'll see out the remaining time on your current fix and avoid the payment of early redemption penalties.

holly_hobby

You can't transfer your mortgage, the term portable relates to the mortgage product (fixed, etc), not the borrowings it applies to.

So, it would be a new mge application, based on your then employement situ, income and commitments.

Porting of the mge product is down to lender discrection, and if agreed, the product over its remaining term, and will be applied to an equal amount of borrowings of new mortgage arrangement, at time of porting, with any residue on a product from their current range.

If your employment contracts are perm with either no probationary period (of if there is a probationary element, you have remained in the same or similar role), and verified by the employer, then that will be fine.

Of course your incomes will have to meet affordability assessment, and if you aren't selling your existing home, but renting it, they may well include the mge commitment within the assessment (although there are lenders whom if will discount this if the property is let).

Hope this helps

Holly

PS - crossed with Kings post

Watham976

Ok thanks I have a much better understanding. We would like to move in the following order...

1 Partner finds job in Bedfordshire
2 Partner moves to parents ( in Hitchen ) with child
3 I then start looking for work in the Bedfordshire/ Hertfordshire area and move when job is found
4 About a month later we apply for a new mortgage
5 Buy house
6 Sell home

Is this reasonable or is it likely (as is my concern ) that we will be stuck living with my partners parents for a year or two before mortgage is approved?

kingstreet

Buy before you sell?

Where's the deposit for the new purchase coming from?

Watham976

kingstreet wrote: »

Buy before you sell?

Where's the deposit for the new purchase coming from?

From the chain . Once our house is sold. I guess the other way round is easier if the mortgage is approved for at least enough time to complete both the sale and purchase.

kingstreet

You actually meant to say the sale and purchase would be concurrent. You gave the impression you were going to buy the new property before you sold the current one.

That's fine then.

holly_hobby

If you're not letting the existing home, then personally, and to keep things simple re your new mge application ....

I would preferably sell before I pch (given that you are residing elsewhere anyway), which not only remove you from a chain, making you a more attractive prospect from the vendors point of view, but will also remove the mge commitment for affordability purposes.

Or, sell and buy simultaneously.

This is because, If you purchase your new home, with your existing property and o/s mge sitting in the background, then as I touched on earlier, you may have affordability and deposit issues, given that your new pch will be assessed under 2nd property regs, with the existing mge factored into their affordability assessment.

Hope this helps

Holly