Porting mortgage with recent defaults & significant debt

kingstreet

Skipton_Building_Society_Representative said:

Hello At Skipton we do offer debt consolidation for existing residential mortgages, up to a maximum of 85% LTV. As with all cases, any application will be subject to a credit check. If you would like to chat further, please reach out to us over one of our Social Media channels.

It's not a debt-con remortgage.

The OP wants to trade down and use equity to repay the debt leaving them with a smaller mortgage. This is dependent on Skipton lending to them again for the onward purchase with the recent adverse.

ReadySteadyPop

eleanorl89 said:

@bobster2 thank you. Yeah I don’t really understand it tbh. On our mortgage statement it says LTV as 81%, but when you sell do they calculate it on sale price? Ideally we’d like to keep the same amount in the house as is currently in there before profit. So that’s £47k approx. So wouldn’t our LTV come down as we want to reduce the mortgage but still keep the same amount in the house?

You shouldn`t make assumptions about "profit" before you have tested the market.

mikiloan

I've heard that some lenders are more flexible with porting if you can show a plan to manage the debts, like through a DMP. Have you tried speaking to a broker who specializes in adverse credit? It might open up more options without immediately ruling out the port. 

Deniseconfused

Im just in the process of porting my mortgage with Nationwide. I completed in Aug on sale - now buying a new property. Im a very high earner with zero defaults / missed payments and they being as picky as anything. Question after question after question via my broker. 

If they dont port it - I'll consider they are stealing my fixed rate off me and the ERC Ive just paid out. Its incredibly irritating 

ReadySteadyPop

Deniseconfused said:

Im just in the process of porting my mortgage with Nationwide. I completed in Aug on sale - now buying a new property. Im a very high earner with zero defaults / missed payments and they being as picky as anything. Question after question after question via my broker. 

If they dont port it - I'll consider they are stealing my fixed rate off me and the ERC Ive just paid out. Its incredibly irritating 

Sign of the times, they know that even high earners can lose a job etc. Many high earners just save up and buy for cash, that cuts the bank out of the picture.

SpireCaptain

We managed to port our mortgage in 2020 for the 2nd time. Gaining a 3rd sub account in the process with Halifax.

That was despite me having £27,000 credit card debt and a low self employment income. Our broker managed to get £50,000 released/bigger mortgage on the proviso I'd pay off the debts with it and the rest used to renovate the house. Halifax have never checked in 6 years what we did with that money and must be able to see on credit file I've doubled in my indebtedness.

How have you faired mortgage wise since starting this thread?

Mgman1965

https://forums.moneysavingexpert.com/discussion/comment/81632227#Comment_81632227

Very Much so, and banks are even more picky about large loans with high monthly repayments purely because if a high earner loses their job, it's very hard to maintain / scrape together monthly repayments that are very high ( a lot of people could likely scrape together, say 1k to 1.5k for a few months, but very, very few could get 3k or 4k together for a few months jobless.