Nationwide -Mortgage Porting

dwill1503

I posted earlier in the week about porting our NW mortgage. We have now spoken to NW and they can't give us an answer as to whether we can port until we have had an offer accepted on a property. Has anyone had any dealings of a similar nature?

Key facts are:
Bought a house in 2008 for £121k and our mortgage was 85% LTV. House is now worth around £220k giving an LTV of 43%.
We would like to sell the house and buy another valued at 200k. We have some bad debt that we would like to clear with the excess (£13k).
(Based on one salary of £35k)

We really don't feel comfortable with going through the process of viewing and placing an offer for it then be possibly turned down.
(The alternative is to just sell the house, pay off debt and invest cash in another property to rent)

kingstreet

Is your issue porting the rate, or is your issue getting another mortgage with Nationwide?

What does this mean?

"We have some bad debt that we would like to clear."

The process is straightforward. You check the affordability calculator to ensure the amount you wish to borrow is affordable.

If it is, you get an agreement in principle to confirm the amount and your mortgage-worthiness.

Then you find a property and submit a paper application for the new mortgage which is where you apply to port the rate from the old mortgage to the new one, choosing a new product for any increased borrowing.

dwill1503

The issue is getting another mortgage with nationwide. We don't think we now meet the criteria because we had missed some payments a couple of years ago on a loan with barclays and also with a nationwide credit card. We now have payment plans direct with both suppliers and make monthly payments on time. Our only reason for selling the house, and i mean only, is to clear the debt and be debt free. We can then sit tight for a few years while our credit file repairs. (We actually don't live in the house, we rent it out and rent another house in the location we want to live in - the rent pays the rent if that makes sense).

We don't want to borrow any more with Nationwide, just move house but they won't even give an agreement in principle. They wouldn't even take our account details to look at the mortgage account as she said it all needs to be done when we've made an offer. it just seems like it could be a waste of everyones time if we then get declined.

I guess we just want to know whether we should be looking at houses to buy or not for the same price or less or not bother.

kingstreet

Why don't you talk to a broker?

If they think you will meet Nationwide criteria, they can do a DIP. If not, they may find a better lender for you.

If you don't have a rate to port to avoid ERPs, or which is worth having, I don't know why you're getting hung up with Nationwide; especially if you have some kind of arrangement to pay with them.

dwill1503

Thats the thing we do have a very good rate and deal with NW, we haven't changed it since 2008 & we don't have any fees other than £90 to pay if we want to end the mortgage.
Having looked at other rate's (and given our credit history) we are pretty sure we won't get another mortgage like we have now.

kingstreet

Ok. So broker does Nationwide paper DIP to establish if you can do what you want?

If it fails, you know you're looking for another lender or staying where you are. I presume you're on BMR. I would try not to give it up too; but sometimes hard decision face us all.

dwill1503

Can we get a DIP though without making an offer? It isn't an option to stay where we are. We will just sell it and pay off mortgage and debt.

kingstreet

Yes. That's normal.

You want to establish if they will lend to you again.

dwill1503

But why were we not told this then by NW on the phone?

skater_kat

do you have consent to let from nationwide on your current deal?

how do you know your house is now worth nearly double what it was?

dwill1503

yes we have consent until 2017.
because we've had it valued.
why skater_at? Do you think they may be issues?