Porting a mortgage

Claree__x

Hi all,

Got a few questions and wondering if someone on here could help.

In a situation at the moment where my husband and his cousin own the house that we currently own. We owe around £97k on the mortgage and the house would sell currently for around £80k tops. Not ideal, obviously in that, for various reasons, we really want to move.

The current mortgage with Nationwide is portable. I've just found this out so not done a whole lot of research into it but the website suggests we can "port" the mortgage and borrow additional if necessary; is this an option? Obviously it would remain with my husband and his cousin as the mortgage holders - which isn't necessarily a problem.

If this IS an option, could we then a few months down the line change the mortgage to myself & my husband? Is this doable by either changing the name and/or remortgaging? I realise there'd be affordability checks etc.

We're in Scotland if it makes a difference.

Thanks in advance

amnblog

Porting allows you the option to take the pay rate with you, not the mortgage.


The new mortgage is underwritten in the usual way.

Claree__x

amnblog wrote: »

Porting allows you the option to take the pay rate with you, not the mortgage.


The new mortgage is underwritten in the usual way.

That'll be that then - ha!

Thanks

kingstreet

Porting doesn't work the way you think and how Nationwide words it.

When the current property is sold, the existing mortgage is repaid. If you purchase a new property, the rate from the old mortgage may be transferred to a new mortgage on the new property with the same lender. The lender has to agree to the new mortgage and criteria, valuation etc be satisfied. There is no guarantee.

Nationwide may allow the rate from the old mortgage to be transferred as long as the party leaving the old mortgage and not joining the new one agrees.

Any increased borrowing will be offered on one of the lender's current products in the loan to value band.

It isn't possible to transfer a mortgage from one property to another; but it is to transfer a rate from an old mortgage to a new one.

Claree__x

kingstreet wrote: »

Porting doesn't work the way you think and how Nationwide words it.

When the current property is sold, the existing mortgage is repaid. If you purchase a new property, the rate from the old mortgage may be transferred to a new mortgage on the new property with the same lender. The lender has to agree to the new mortgage and criteria, valuation etc be satisfied. There is no guarantee.

Nationwide may allow the rate from the old mortgage to be transferred as long as the party leaving the old mortgage and not joining the new one agrees.

Any increased borrowing will be offered on one of the lender's current products in the loan to value band.

It isn't possible to transfer a mortgage from one property to another; but it is to transfer a rate from an old mortgage to a new one.

Thanks - I'm glad I'm not alone in thinking that Nationwide word it badly!

kingstreet

They must actually train their staff to explain it in such a way they suggest a mortgage can be transferred from one property to another.

The fundamental error here is the mortgage is the deed which ties the homeloan to the security property; where it's become common for people to think the homeloan is the mortgage.

So, when you sell, the solicitor gets the money in, repays the homeloan and this means the mortgage, the security can be redeemed and the property transferred to the purchaser, whose homeloan is then secured by a new security, or mortgage, over it.

If you are buying a new home, your solicitor gets the new homeloan from the lender and adds to it the residue from the sale, your "deposit" if you will and this is paid to the next solicitor.

As mentioned, the rate from the old homeloan can be transferred to the new one, or "ported" if permitted by the lender in question.