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Porting mortgage, with additional borrowing for fees (Natwest)
mortgagequestioner12
Posts: 2 Newbie
Really struggling with this one, would appreciate some advice...
I remortgaged last year into a 5 year fixed with NatWest. I now want to move, and have a property in mind, which is significantly cheaper than my current one. However I'm realistically stuck with NatWest due to the high ERC, which is limiting me to porting and hence 80% LTV. Due to the market and my current place having been a new-build and not being a very popular layout, the only interest I've had is fairly low offers. They will leave me with enough equity in my property to put a 20% deposit down on the new place and the mortgage will be £40k cheaper than my current mortgage, which I will have to pay a small ERC on.
However, I would need a personal unsecured loan to cover SDLT/fees. Monthlies affordability is not an issue, even with the loan taken into account, NatWest will lend nearly twice the new mortgage amount. The new mortgage and loan is less than my current mortgage is.
Are NatWest likely to look kindly on such an application? I know that it is a general rule that balance of the purchase price must be met from your own funds, but that is stated as the difference between the mortgage and the property purchase price, which is demonstrably all coming from my own funds (sale equity).
The frustrating thing is as soon as I had the property, NatWest would lend up to 90% for any purpose?!
I remortgaged last year into a 5 year fixed with NatWest. I now want to move, and have a property in mind, which is significantly cheaper than my current one. However I'm realistically stuck with NatWest due to the high ERC, which is limiting me to porting and hence 80% LTV. Due to the market and my current place having been a new-build and not being a very popular layout, the only interest I've had is fairly low offers. They will leave me with enough equity in my property to put a 20% deposit down on the new place and the mortgage will be £40k cheaper than my current mortgage, which I will have to pay a small ERC on.
However, I would need a personal unsecured loan to cover SDLT/fees. Monthlies affordability is not an issue, even with the loan taken into account, NatWest will lend nearly twice the new mortgage amount. The new mortgage and loan is less than my current mortgage is.
Are NatWest likely to look kindly on such an application? I know that it is a general rule that balance of the purchase price must be met from your own funds, but that is stated as the difference between the mortgage and the property purchase price, which is demonstrably all coming from my own funds (sale equity).
The frustrating thing is as soon as I had the property, NatWest would lend up to 90% for any purpose?!
1
Comments
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Natwest have a duty of care towards you. As you are downsizing there's no reason for them not to consider your proposal. Though would be a good idea to have all the financial details clearly laid out in preparation.0
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