Question about porting / checks etc... ?

mi-key

Hoping some advisors or members can help.  I know when I remortgaged / renewed my deal recently with the same lender ( virginmoney ) they didn't need to do any checks or anything, they just moved me from my old deal to my current one and it was all straightforward. 

How does it work with porting when moving?  I would be looking to keep the same amount of borrowing with the same lender, or possibly reduce it a bit, but not increase it at all. Do they have to go through all the income checks etc.. as if it was a new application or do they just do the basic affordability one, or do they just move everything over to the same deal you had but on the new property?

The LTV on the new property would likely to be around 50% rather than the <30% I  have now, but I understand this is still low enough for them to not worry about it

I have a long term fix at low interest with them, so would be looking to port over my existing deal to the new property

ACG

I do not know about virgin specifically, but you generally have to re-apply and there will be underwriting checks. They could ultimately decline the application. 

However, in the past where that has happened with some of our previous customers I have picked up the phone explained how daft the decision is and got them to do it. 

mi-key

Thanks ACG, what sort of reasons would they use to decline the application ? and do you think I would be better going via a broker than to them directly to do it ? 

It is a weird system though. I have the deal with them at the moment, and have been quite happily paying that, then if I move to a new house, on the same deal and amount borrowed, or less, the computer says I can't afford it !

Orchid12

A family member had this issue. Despite AIP for a lot more, wouldn’t let them borrow and more and said they would be able to borrow less than current mortgage. But the underwriter did approve the porting in the end. 

mi-key

Orchid12 said:

A family member had this issue. Despite AIP for a lot more, wouldn’t let them borrow and more and said they would be able to borrow less than current mortgage. But the underwriter did approve the porting in the end. 

Were they wanting to borrow more for the new place? I'm not sure if they look at it differently if you are borrowing the same or less maybe?