Port Nationwide mortgage with overpayment
paul_l
Posts: 6 Forumite
Hi
Does anyone know how Nationwide would handle the following?
We are looking to move house to somewhere that is relatively cheaper, due to needing to move closer to work to reduce the coummuting time/distance.
We started a new 5 year fix earlier this year (great timing
) at 55% LTV (original purchase was at 60%) that has 10% overpayment/year allowance (unused as yet since the remortgage).
For the property we are looking at, we would be slightly over 60% LTV and presumably unable to port the full mortgage. Are we able to repay up to 10% of the mortgage at the point of completion, to keep LTV under 60% and avoid an ERC whilst porting?
The Nationwide FAQs mention that ERC is due but do no mention the 10%/year ERC exemption.
If the exemption does not count, is the ERC payable on the full mortgage balance or only the amount needed to stay within the 60% product LTV?
Does anyone know how Nationwide would handle the following?
We are looking to move house to somewhere that is relatively cheaper, due to needing to move closer to work to reduce the coummuting time/distance.
We started a new 5 year fix earlier this year (great timing
) at 55% LTV (original purchase was at 60%) that has 10% overpayment/year allowance (unused as yet since the remortgage).For the property we are looking at, we would be slightly over 60% LTV and presumably unable to port the full mortgage. Are we able to repay up to 10% of the mortgage at the point of completion, to keep LTV under 60% and avoid an ERC whilst porting?
The Nationwide FAQs mention that ERC is due but do no mention the 10%/year ERC exemption.
If the exemption does not count, is the ERC payable on the full mortgage balance or only the amount needed to stay within the 60% product LTV?
0
Comments
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I am wondering about this too. Do the lenders want you to port & get a smaller or bigger mortgage - not sure what the rules are. I shall be calling hsbc tomorrow, to find out. Good luck0
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Porting is the transfer of the existing mortgage balance. If you borrow more then an additional product will be required. To borrow less then the lender might decline to port.0
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If you are moving to a cheaper property, but are happy to keep the same mortgage amount, is that usually ok ? LTV would be 30%....0
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I did speak to Nationwide, who said that in my situation, if application approved, ERC would be payable on the amount redeemed to keep LTV under 60%, not the full mortgage. The 10% overpayment allowance could only be used before or after the redemption and not at the point of porting.
What I did discover is that it is possible (if approved) to port the deal after selling, I think it was up to 6 months afterwards, and get the ERC refunded.0 -
Do you have the cash to keep the LTV under 60%
If 10% will do it, overpay day 1, port day 2.(or whatever gap is needed to make it happen)0 -
Joeygirl72 wrote: »If you are moving to a cheaper property, but are happy to keep the same mortgage amount, is that usually ok ? LTV would be 30%....
porting a loan to cheaper property the LTV goes up not down0
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