Northern Rock - portability

foolishqueen

Hello All,

Just a quick question. I took out a mortgage with NR in January, but for various reasons, we may be wanting to sell up and move (probably to buy another house). My question is how does portability come into play?

The reasoon I ask is that when I got my Together 5 year fixed mortgage, because I took out a 5 year fix, I got higher multipliers. But I now know that NR have scrapped this....does that mean they would no longer us near what I originally borrowed? i.e. I would have to downsize if I were to move?

Thanks in advance for any replies.

foolishqueen

**bump**.....anyone?

Leon_W

Portability means that you can move your mortgage to a different property on the same terms.

Now, it is not always as good as it seems. Generally, lenders will charge the arrangement fee again, so if this is large then prepare to be whacked. It also involves another full application. Also, if the loan you require is larger than that you already have then they can refuse the extra.

You're best off phoning and asking what it entails given your circumstances.

Conrad

To answer your question the loan will be fully re assessed as if you were a new borrower. Portability merely relates to the fact penalties can be waived where the same mortgage for the same sum is ported to a new home.

Many people are caught out by this which I think is potentialy unfair as most clients will not have fuly realised the limitations of 'portability'.

foolishqueen

Thanks everyone. I will try and give them a call over the next few days. I would not want to borrow more than I already have, but my main worry is that given their tighter lender criteria, they would not lend me as much as they did originally were I to port the mortgage? I originally borrowed £129k but this took into account the enhanced multipliers for a longer fix. Are they going to turn now and say, yeah we can port it, but now all we would lend you is x? (£111k accorinding to a quick quote on thier website).

Thanks again.

Leon_W

Never say never, but I can't imagine them doing that. You would represent no greater risk than you do now if the loan size remains the same. please come back and update the thread if it's anything different. Be prepared for the arrangement fee and the ever so expensive Northern Rock valuation fee mind !

Dan_Collins_2

foolishqueen wrote: »

Thanks everyone. I will try and give them a call over the next few days. I would not want to borrow more than I already have, but my main worry is that given their tighter lender criteria, they would not lend me as much as they did originally were I to port the mortgage? I originally borrowed £129k but this took into account the enhanced multipliers for a longer fix. Are they going to turn now and say, yeah we can port it, but now all we would lend you is x? (£111k accorinding to a quick quote on thier website).

Thanks again.

They have the saem multiples for both together and standard now, but NR are the type of lender who will do a deal if it makes sense!

Dan_Collins_2

Conrad wrote: »

To answer your question the loan will be fully re assessed as if you were a new borrower. Portability merely relates to the fact penalties can be waived where the same mortgage for the same sum is ported to a new home.

Many people are caught out by this which I think is potentialy unfair as most clients will not have fuly realised the limitations of 'portability'.

Why is it potentialy unfair? Not sure what you mean! I know this site is to help fight against unfair stuff and save money but banks etc still need to make some money thats why they are there!

MarkyMarkD

Leon_W wrote: »

Portability means that you can move your mortgage to a different property on the same terms.

Now, it is not always as good as it seems. Generally, lenders will charge the arrangement fee again, so if this is large then prepare to be whacked.

Who exactly charges the arrangement fee again?

It's not fair, or true portability, if that's the case. Once you've paid the fee, you're entitled to the product for its term - irrespective of whether you port it to a new property.

foolishqueen

NR will charge the fee again I assume, as other have said, you are in effect getting a new mortgage. I was aware that I'd probably have to pay this fee again.

Does anyone know if my interest rate would stay at its current fixed rate if I port?

Also, just re-reading my offer, and I notice that if you port, any existing unsecured borrowing (I am on their Together mortgage) will no longr be payable at the fix rate, but it goes up to 8% above the current SVR rate :mad: That will not be good

kd811

northern rock don't charge another arrangement fee if you port the same product over, however they do charge a porting fee currently £250 and there will be a new valuation fee payable for the new property.
If you port you transfer the current terms and conditions over inluding the remainder of your fixed deal rate.
The higher rate payable for the unsecured is usually only payable if you don't transfer this over...i.e you pay off the secured amount when you sell and leave the unsecured loan with Nr they will then charge this at 8% above the SVR.
It would be unusual for NR to reduce your lending however theymay restirct your borrowing to a straight balance swap however any loan will be subject to the new property value and any chnages since you last applied. If you call them they will be able to go through all your options in about 15-20 minutes..they're open 8-8