Porting mortgage within fixed term

summerb64

Hello, 

I purchased my property on a 5 year fix with nationwide at an okay-ish rate of 4.5%. This was in Jan 2023, I am thinking about getting a bigger place by the end of this year, so want to avoid paying ERC’s which are very high, but I do have the option of porting. 

My house is valued at about £20k more than I paid for it, so hopefully it would sell for that or more when the time comes, and I would be looking to borrow another £40k or so from
nationwide to make up the difference; I will have savings etc to potentially bring this amount down. 

My question for mortgage brokers is, is porting to another property with additional borrowing something I should speak to a broker about; or with it only being able to be done with the same lender I’m currently with, a simple enough process to deal with on my own? Hypothetically, If it was sorted with 3 years remaining on my current mortgage, could I get a mortgage term for the same amount of time remaining on the additional mortgage so they would be due to remortgage at the same time?

many thanks!

kingstreet

Nationwide will confuse you by suggesting you can transfer a mortgage from one property to another. You can't and the process is simple if you understand what happens.

When you port, you take a new mortgage for the full amount you need with the existing lender. When you sell your current home, the existing mortgage is repaid from the sale proceeds and the terms (old rate for remaining YY/MM) is transferred to new mortgage and any increased borrowing is taken on one of lender's new products.

End result, you have one mortgage across two sub-accounts which reflect the two chunks of borrowing at two different times.

Depending on the time left on current deal, you can choose the new deal closest to its expiry for the new bit.

I suspect a broker will deal with it more efficiently and will explain it better.

DE_612183

Why would you go to a broker?

Keep all the products within Nationwide.

If you are on a 5 year fix and you are only into the 2nd year, I would suspect the EPCs are quite high.

Nationwide may also let you pick a new product for the whole new amount ad waive and ERPs on the old mortgage - speak to them first.

amnblog

DE_612183 said:

Nationwide may also let you pick a new product for the whole new amount ad waive and ERPs on the old mortgage - speak to them first.

That is not what they do, hence the portability option.

kingstreet

DE_612183 said:

Why would you go to a broker?

Keep all the products within Nationwide.

If you are on a 5 year fix and you are only into the 2nd year, I would suspect the EPCs are quite high.

Nationwide may also let you pick a new product for the whole new amount ad waive and ERPs on the old mortgage - speak to them first.

1. Because we'll have it done before you can get an appointment with a lender.
2. A port means it remains with the existing lender.
3. No. The only way to get a new product for the entire borrowing is to pay any ERC. A few lenders will allow that in the last few months, most won't.