Nationwide Mortgage Help LTV

regular_guy27

Hi, our house is currently on the market for sale at £112000. We have an outstanding mortgage with Nationwide of £60000. We are planning/hoping to buy a bigger property which will obviously mean a bigger mortgage. I’m confused with the recent changes and what they mean for existing Nationwide customers. Can we increase our borrowing by increasing LTV? Hope this makes sense. 

(As an example, purchase a property for £200000 with only a £20000 deposit rather than the full equity from our sale?)

jamielutz1987

@regular_guy27 I'm not sure I understand your question. Do you need to port your current Nationwide mortgage over to the new property?

regular_guy27

@jamielutz1987 thanks for the prompt reply. Yes we were thinking of doing that. 

ChloeManoey

No, you can't increase the amount you can borrow, by increasing LTV/increasing property price. I think that's what you're asking? 

The amount you can borrow is based on your income, there is a limit, regardless of how much the property costs. 

If you want to put down a smaller deposit and keep the proceeds of your sale, yes of course you can. But the smaller deposit you put down, the higher your monthly payments will be, so watch your affordability. 

regular_guy27

@ChloeManoey I am fully aware that the amount we can borrow is based on our income. Our affordability is good and much more than what we require. My understanding is that Nationwide has removed 90% LTV mortgages for new customers. Are they still available to existing customers? The Nationwide website appears to say they are but I am seeing conflicting reports on other websites.

ChloeManoey

Okay, that's not at all what your original post is asking, perhaps re-write it to ask the question you want the answer to. 

Maybe give Nationwide a call tomorrow and ask the question? If anyone knows, then they will. 

jamielutz1987

@regular_guy27

1.Yes you can potentially increase borrowing while porting, but that involves picking a new (current) product and going through the whole affordability process. You will end up with two parts to your mortgage, potentially making future remortgages more complicated.

2. Can you release equity while porting - I don't know, I suspect the answer is no.

3. How much is the ERC if you were to pay off the balance 60k today? Is there a particular reason you want to port? Have you looked at mortgage options that may well be cheaper overall and easier to move to a higher LTV.

regular_guy27

@ChloeManoey I did say in my original comment that I hope this makes sense lol.
Fully intend on giving them a call tomorrow but thought I would ask on here first in case anyone else knew the answer that’s all.

ChloeManoey

regular_guy27 said:

@ChloeManoey I did say in my original comment that I hope this makes sense lol.
Fully intend on giving them a call tomorrow but thought I would ask on here first in case anyone else knew the answer that’s all.

Fingers crossed 🤞🏻😊

regular_guy27

jamielutz1987 said:

@regular_guy27

1.Yes you can potentially increase borrowing while porting, but that involves picking a new (current) product and going through the whole affordability process. You will end up with two parts to your mortgage, potentially making future remortgages more complicated.

2. Can you release equity while porting - I don't know, I suspect the answer is no.

3. How much is the ERC if you were to pay off the balance 60k today? Is there a particular reason you want to port? Have you looked at remortgage options that may well be cheaper overall and easier to move to a higher LTV.

If we chose not to port and chose to remortgage instead are Nationwide allowing existing customers who remortgage to increase borrowing to 90% LTV of the new property? 

jamielutz1987

regular_guy27 said:

jamielutz1987 said:

@regular_guy27

1.Yes you can potentially increase borrowing while porting, but that involves picking a new (current) product and going through the whole affordability process. You will end up with two parts to your mortgage, potentially making future remortgages more complicated.

2. Can you release equity while porting - I don't know, I suspect the answer is no.

3. How much is the ERC if you were to pay off the balance 60k today? Is there a particular reason you want to port? Have you looked at remortgage options that may well be cheaper overall and easier to move to a higher LTV.

If we chose not to port and chose to remortgage instead are Nationwide allowing existing customers who remortgage to increase borrowing to 90% LTV of the new property? 

As per their website, they do say that 90% LTV Nationwide Mortgages are available for existing customers who are moving home.