Port interest only mortgage ?

Zippydebs

We are looking to port our current interest only deal with natwest. We have good payment history, no credit problems and not looking to extend or borrow anymore money. Natwest have told us that we cannot port all of our mortgage unless we can provide evidence to show our pension projections will cover the value of the mortgage.

Although our pensions will cover some, there is not enough to cover it all. My understanding was that we were covered by the transistional rules for existing borrowers and new rules on affordability do not apply.
Any advice gratefully received

Thrugelmir

Zippydebs wrote: »

My understanding was that we were covered by the transistional rules for existing borrowers and new rules on affordability do not apply.

What transitional rules? By porting you are entering in a new mortgage contract. So all the new rules and checks apply as far as the lender is concerned.

Porting only refers to the some of the existing mortgage terms and conditions i.e. interest rates.

TrickyDicky101

The transitional MMR rules are not mandatory so lenders get to choose whether or not they implement them.

Because in your situation you would require an entirely new mortgage on another property the lender gets to apply whatever conditions it wants (within the regulatory framework). You, in turn, are free to look at alternative lenders.

libf

So if your pension won't cover the mortgage when how are you going to pay it off? Might be a good time to switch to repayment...

getmore4less

Zippydebs wrote: »

We are looking to port our current interest only deal with natwest. We have good payment history, no credit problems and not looking to extend or borrow anymore money. Natwest have told us that we cannot port all of our mortgage unless we can provide evidence to show our pension projections will cover the value of the mortgage.

Although our pensions will cover some, there is not enough to cover it all. My understanding was that we were covered by the transistional rules for existing borrowers and new rules on affordability do not apply.
Any advice gratefully received

Ask what else they find acceptable to pay off the debt.

perhaps increasing your pension contributions.

The fall back may be to have the rate but on repayment terms along with any extra borrowing