Porting a mortgage to new property - Nationwide

Clutterfree

Thrugelmir wrote: »

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.

Thanks but been with them 14 years, never missed a payment and for last 3 years we've overpaid by £500 a month, only stopped overpaying once we were considering moving.
So I know we can afford it and so do they but I know we will probably still have to jump through hoops!

Clutterfree

Update: After finding out we would have to go through the usual rigmarole of applying for mortgage, proof of earnings, etc and then waiting 4-6 weeks for it to be approved we have decided not to port our mortgage. In fact we have decided to use our savings to pay off our mortgage and then move mortgage free! :j
Then when we require funds for any home improvements we can remortgage at our leisure. I know as a "new" customer we won't get as good a rate as an existing customer but we would have time to shop around rather than stick with Nationwide.

Thanks for all your responses. In a week or two we will be mortgage free :T well for a few months at least!

AnotherJoe

Clutterfree wrote: »

Then when we require funds for any home improvements we can remortgage at our leisure. I know as a "new" customer we won't get as good a rate as an existing customer but we would have time to shop around rather than stick with Nationwide.

Not necessarily. If you only want a small amount (lets say under £25k) you may find it very difficult to get a mortgage. There have been a few posts on that here.

Clutterfree

Think it will be more 40-50k tbh.
Ah well, we shall cross that bridge when we come to it...

martinsurrey

AnotherJoe wrote: »

Not necessarily. If you only want a small amount (lets say under £25k) you may find it very difficult to get a mortgage. There have been a few posts on that here.

Clutterfree wrote: »

Think it will be more 40-50k tbh.
Ah well, we shall cross that bridge when we come to it...

one way around this is to get a larger Offset mortgage, then place the excess in the offset account.

on paper you've got a £100k mortgage, in principle you're paying for a £20k mortgage

dexterwolf

I am in the process of looking for a new house. I won't be borrowing anyone on the mortgage but I spoke to an advisor from Nationwide and they said that you can port the Mortgage to the new property.


My fixed rate is up soon so ideally I would want another fixed rate for 2/3 years and then port that when we move to the new property.

kingstreet

Not true.

You can port the rate from the old mortgage to a new one, provided the lender will lend to you again following the usual checks.

The mortgage is repaid from the sale proceeds, the rate is transferred to the new one, and the new one starts from the date completion takes place.

dexterwolf

I asked if there would be any charges and they said that there shouldn't be if porting.


So I presume from what you have said I will have some extra charges somewhere ( ie the newer mortgage price would go up a few grand or something ?)

kingstreet

Er, no.

Not necessarily.

Nationwide is giving a free valuation on every new application - porting or not.

If you are not increasing the amount you are borrowing, there will be no product fee. If borrowing more, you can choose a new product with no fee.

If you took out your mortgage when there was a discharge fee, £90? this might be payable.

Otherwise, it's your usual estate agency, survey and legal costs to meet when you sell and buy.