Porting a mortgage to new property - Nationwide

Clutterfree

Hi,
We've just had an offer accepted on a house and we don't need to increase our mortgage to move.

We currently have £18k in mortgage overpayments which we'd like to have back because they will cover our buying and selling fees with a little left over.

Even after we take the cashback, our loan to value would be just under 11.5%.

We'd like to take our current mortgage with us. It's 2.5% which I *think* is their SVR. We like the flexibility of making overpayments which can be kept in a reserve if needed (don't think they offer this mortgage now).

My main question is, would we need to go through the process of proving income again seeing as we are not increasing or changing our mortgage and have always paid on time plus made overpayments?
Or would it just be a case of getting a valuation done on the new property and porting the existing mortgage?

Obviously I'll call Nationwide on Monday, but was wondering if anyone had done this and could share.

Many thanks.

mrginge

You cannot port a mortgage.

You apply for a new mortgage on the new property, go through the affordability assessments and if passed, then the lender will port the rate on the current balance to the new mortgage.

Clutterfree

Thanks.
I thought I was able to take my existing mortgage terms and rate with me but looks like starting from the beginning again.
Was hoping we'd not have to go through the rigmarole of proof of income, bank statements, etc because we aren't borrowing more, just moving home.

mrginge

Clutterfree wrote: »

Thanks.
I thought I was able to take my existing rate with me but looks like starting from the beginning again.

You can take the rate (but there is no point if it's SVR), but you still have to appl and qualify for the mortgage.

emg

2.5% sounds like the Nationwide BMR, as far as I'm aware this is no longer offered on any of their new products.

Clutterfree

emg wrote: »

2.5% sounds like the Nationwide BMR, as far as I'm aware this is no longer offered on any of their new products.

Yes it is their BMR, I looked it up after my post.
If I'm going to have to go through the hassle of income proof, etc then I may well consider changing lenders. If it was a straight forward move house and keep existing mortgage, because there's no increase in borrowing, then I'd not bother shopping around.

Does anyone know if there are any mortgages that allow us to overpay our mortgage into a cash reserve if we want to?

Our loan to value will be just under 11.5% and term 10 years.

I'm guessing it's time to contact a mortgage broker on Monday!

Marshyman

providing your application is successful (credit check / affordability) then yes you can port the Base Mortgage Rate product to your new property and keep all the existing benefits and terms that you have currently

Also if you are an exisiting customer with Nationwide and not borrowing more they may have some leeway when it comes to decidion making as the risk is not increasing to them

dimbo61

If you do end up getting a new mortgage from a new lender then consider an offset mortgage.
You can build up savings in the offset and as the balance drops then you can save into ISA,s

Clutterfree

Marshyman wrote: »

providing your application is successful (credit check / affordability) then yes you can port the Base Mortgage Rate product to your new property and keep all the existing benefits and terms that you have currently

Also if you are an exisiting customer with Nationwide and not borrowing more they may have some leeway when it comes to decidion making as the risk is not increasing to them

Thanks Marshyman.
I'm sure we will be fine with credit checks - only debt we have is the mortgage, no loans, have 1 credit card paid in full each month so no interest.
Have 2 "catalogue" accounts but both with zero balances and if used are paid so no interest incurred.
I've never checked our credit report because not needed to.
Last time we applied for any credit was in 2011 for a credit card when we went to Florida because it gave better rates than our existing card. Never used it and since been cancelled.

So hopefully all is fine there.
It's just the hassle of getting documentation together because husband is self employed so need to get declaration letter from accountant.

I was naive to think that because we aren't borrowing any more funds it would be a simple case of get house valuation and take mortgage with us.

Hoping it won't delay things too much but if we can get a DIP tomorrow then hopefully it will keep the EA and Vendor happy.

Worse case scenario, if we get declined, is we pay off existing mortgage with our savings but then it leaves us with little to get the necessary work done on the next house.

I'm such a worrier - LTV is only 11.38% so we are hardly high risk are we?

getmore4less

I think your starting point is what you have thought.

If you can get your overpayments back to cover costs and port a Nationwide BMR(base + 2% lifetime tracker) deal then that is the starting point for finding a better deal.

Once you know the costs Nationwide want to do the port(valuations legal etc) you can then decide if you want to look for something better/cheaper.

Thrugelmir

Clutterfree wrote: »

I'm such a worrier - LTV is only 11.38% so we are hardly high risk are we?

Lenders are more concerned with your ability to afford the mortgage rather than the security provided. Mortgages are low at interest rates for this very reason. Higher default rates would increase cost of debt collection. An expensive and time consuming operation for lenders.