Porting mortgage - does it save BACS fees?

ed67812

Hopefully we'll be moving soon and this question might be really daft and obvious.

Had the info through from the solicitors and included in the fees is the fact that they will charge the usual (expensive) £30.00 to redeem mortgage and £30.00 to transfer the transfer the excess funds (we are taking some equity out for required improvements on the new place).

I've already told them that I want a cheque for the excess. I'll walk the 20m between their office and my bank to save that! Am I right in thinking that as I am porting my mortgage and then borrowing more on a second mortgage with Nationwide that there is no need for the solicitors to transfer them any money?

Thanks

G_M

There are no fees for using BACS.

Am I right in thinking that as I am porting my mortgage and then borrowing more on a second mortgage with Nationwide that there is no need for the solicitors to transfer them any money?

If you are "borrowing more on a second mortgage with Nationwide" then clearly NW will ned to transfer the money to your solicitor.

ed67812

Yes, I get that Nationwide will charge to send fees to the solicitor, but that would be true in any buying scenario.
The fee that I am querying is to do with the selling of my property. Normally there would be a mortgage to redeem but there is no redemption in this case.

G_M

Sp discuss the transfer to you with your solicitors!

kingstreet

There is a mortgage to redeem.

You misunderstand how porting works, which is not strange considering how Nationwide has trained its staff to explain it.

A mortgage is a deed which ties a loan and a security property together. To discharge your mortgage and give your purchaser unencumbered title to the property, your solicitor repays ALL your loan from the proceeds of the sale.

He receives all the mortgage monies for the new purchase when he requests them, adds them to the residual funds from your sale, which we can call your deposit and passes them to the vendor's solicitor to complete your purchase.

You have one new Nationwide mortgage which is made up of different sub-accounts representing the different amounts at different rates which now make up your new loan.

Nationwide charges no TT fee for sending the mortgage money to your solicitor, but you will be responsible for any charges your solicitor levies for his payments to Nationwide and to your vendor's solicitor for your purchase.

eddddy

kingstreet wrote: »

There is a mortgage to redeem.

<snip>

So are you saying that if somebody buys and sells on the same day - perhaps redeeming a mortgage for £100k, and getting a new mortgage for £150k (both with Nationwide)...

... Nationwide will TT £150k to the solicitor, and the solicitor will have to TT £100k back to them?

As opposed to Nationwide doing an internal account transfer for £100k, and doing a TT to the solicitor of £50k. (I think that's the 'real' question the OP is asking [or should be asking] - because it saves a solicitor's TT fee.)

I can't see why two transfers should be needed..

ed67812

... Nationwide will TT £150k to the solicitor, and the solicitor will have to TT £100k back to them?

As opposed to Nationwide doing an internal account transfer for £100k, and doing a TT to the solicitor of £50k. (I think that's the 'real' question the OP is asking [or should be asking] - because it saves a solicitor's TT fee.)

Yep that's exactly what I was trying to ask....it's only £30 in a £235k house purchase but £30 is £30.

Richey_

Is somebody having a bad day? Really, how to upset the Solicitor by suggesting you are being ripped off asking for the difference back. I'm sure keeping the solicitor onside is easier than arguing about such a small fee which you most likely agreed to when you engaged their services.
It's £30, chill.........

davidmcn

eddddy wrote: »

So are you saying that if somebody buys and sells on the same day - perhaps redeeming a mortgage for £100k, and getting a new mortgage for £150k (both with Nationwide)...

... Nationwide will TT £150k to the solicitor, and the solicitor will have to TT £100k back to them?

Yes, that's how it's done. Bear in mind that the mortgage advance will often be sent to the solicitor a day or so in advance of completion, and the redemption might be sent to the lender the day after completion, rather than everything actually happening simultaneously. I don't think I've experienced any lender doing internal transfers like that, and even if they did they'd probably charge you a CHAPS fee anyway.

kleapatra

eddddy wrote: »

So are you saying that if somebody buys and sells on the same day - perhaps redeeming a mortgage for £100k, and getting a new mortgage for £150k (both with Nationwide)...

... Nationwide will TT £150k to the solicitor, and the solicitor will have to TT £100k back to them?

As opposed to Nationwide doing an internal account transfer for £100k, and doing a TT to the solicitor of £50k. (I think that's the 'real' question the OP is asking [or should be asking] - because it saves a solicitor's TT fee.)

I can't see why two transfers should be needed..

That's exactly what happens, I sold my old house last year and purchased a new one (completion for both on same day), the old mortgage was with Halifax, so was the new one but the money for the sale was transferred to Halifax on the day and the new mortgage transferred from Halifax at the same time. They treat them as completely separate transactions. The CHAPS fee is something you just have to swallow, there really are bigger things to argue over!

kingstreet

eddddy wrote: »

So are you saying that if somebody buys and sells on the same day - perhaps redeeming a mortgage for £100k, and getting a new mortgage for £150k (both with Nationwide)...

... Nationwide will TT £150k to the solicitor, and the solicitor will have to TT £100k back to them?

As opposed to Nationwide doing an internal account transfer for £100k, and doing a TT to the solicitor of £50k. (I think that's the 'real' question the OP is asking [or should be asking] - because it saves a solicitor's TT fee.)

I can't see why two transfers should be needed..

Yes, that's exactly what I'm saying.

The existing loan has to be fully repaid so the security can be discharged and a whole new advance is granted for the new purchase.

The same system is used for ports as is used for non-ports and remember the only thing ported is the rate from one mortgage to another, not the actual money.