Porting Mortgage with Northern Rock Concern

colonelblighty

We are currently selling our jointly mortgaged house and going our seperate ways with me hopefully porting the mortgage into just my name.

There are ERC's of about 6K to pay which as part of my terms are refunded if I port to a new property within 12 week from completion of the sale of our house.

I was wondering if the Northern Rock get taken over then I realise the terms of my mortgage remain the same but the key word in the porting is to 'another northern rock product', so If they don't exist how can I port to another product.

luckyfool

colonelblighty wrote: »

We are currently selling our jointly mortgaged house and going our seperate ways with me hopefully porting the mortgage into just my name.

There are ERC's of about 6K to pay which as part of my terms are refunded if I port to a new property within 12 week from completion of the sale of our house.

I was wondering if the Northern Rock get taken over then I realise the terms of my mortgage remain the same but the key word in the porting is to 'another northern rock product', so If they don't exist how can I port to another product.

The terms with Northern Rock (assuming you have a flexible fixed rate) are actually that you can port the same product onto a new property where the loan is for the same amount or more, and unusually if you borrow more you get it at the same interest rate as well. If you go for a lower amount you are likely to find that you will get a proportionate refund on your redemption penalties.

The catch is that the portability is on their terms and lending criteria at the time you move house. The bottom line is as of now you can move and take the mortgage with you, if in the future for whatever reason Northern Rock were to withdraw from offering mortgages or altered their criteria to a degree that you did not qualify then there would not be much you could do about it.

colonelblighty

Thanks for the reply Lucky,

I suspected as much to be honest.

The rate I am on is 5.79% fixed for another 12 years as surety was/is important to me and they will let me borrow more which I will need.

Just have to hope the house sells soon so I can move forwards as swiftly as possible.