Nationwide Mortgage Porting
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Nationwide Mortgage Porting Guide.
Managing your mortgage can get difficult while moving from one property to another. Most borrowers prefer porting their mortgages especially since rates can be good and they are with a high street bank or building society. This arrangement allows you to take your mortgage to a new property while saving you early repayment charges while keeping the low rates.
Nationwide Building Society is a reputed mortgage lender in the UK. If you are planning to port your mortgage with Nationwide, it is always advisable to you work with experienced independent mortgage brokers who know the market well.
What is Mortgage Porting?
Mortgage porting is you moving your current mortgage to your new home. The current mortgage terms and conditions will remain the same throughout the fixed term of your mortgage. Not all mortgages are portable, it can depend on a couple of factors.
Important Factors while Nationwide Mortgage Porting .
While porting your mortgage with Nationwide can give you several benefits, here are a few factors you should consider before moving forward:
Financial Circumstances
Porting your mortgage may get difficult if your financial circumstances have/had changes since you purchased your older property. Nationwide has its criteria for mortgage porting, and you should meet them to move your mortgage to a new property. Consult your broker to help you evaluate the change in your financial circumstances before making your application.
Loan-To-Value.
Your loan-to-value (LTV) may change while porting your mortgage, depending on the value of your new property. New property price and your deposit will determine the LTV. This will have an impact on your mortgage.
New Property’s Value
As you port your mortgage to a new property with Nationwide, the new property will be valued, influencing the overall arrangement. You may also need to pay a nominal valuation fee to get your property assessed. Higher property price means you may need to pay more in deposit.
Legal Expenses
Mortgage porting involves legal procedures and paperwork, leading to legal costs. Your mortgage broker should help to give idea regarding the expenses involved.
What are the benefits of Nationwide Mortgage Port?
Before you make any concrete decisions, let us have a look at a few major benefits of porting your mortgage with Nationwide:
Keeping Your Existing Mortgage Deal
When you port your mortgage, you can keep your existing mortgage deal, along with the current terms and interest rate. This proves useful, especially in the cases of fixed-rate deals. If you are in the middle of your fixed term, porting your mortgage with Nationwide also lets you continue with the same interest rate.
No Early Repayment Charges.
If you choose to end your existing mortgage deal before a specific period of time, your lender may ask for early repayment charges. Porting your mortgage lets you keep your existing deal, helping you avoid such charges. This helps you save a fortune while moving to a new property.
Top-up Mortgages
If you are purchasing a property that is more expensive than the current one, Nationwide helps you borrow more with top-up mortgages. Without affecting the ongoing arrangement, you can borrow more and cover the additional expenses incurred while purchasing an expensive property. Your mortgage broker will help you confirm if you are eligible for such offerings.
High Flexibility
Moving home is already a time-consuming process. Porting your mortgage gives you the much-needed flexibility and ease in managing your debt. Instead of settling your existing dues and getting a new mortgage, this arrangement allows you to retain your existing mortgage along with all its terms.
What is the Nationwide Mortgage Porting Process?
Talk to a Mortgage Broker.
First thing first, let the expert help you. it’s always a good idea to let your mortgage broker handle your porting. We at MariannaFS are experts in mortgage porting so let us help you.
Eligibility Check.
Your mortgage broker can check your current mortgage to let you know if you are eligible to port the mortgage or not.
Income Assessment
Your mortgage lender Nationwide wants to know if you can afford the mortgage or not. It you are buying a bigger property then you may want to borrow more on your mortgage. Your mortgage broker can help here too.
Submit the Application.
A mortgage porting application can be sent to Nationwide once all the checks have been complete. If you need to borrow more, then additional borrowing needs with be done with Nationwide.
Survey and Approval.
Once your application is sent to Nationwide, they will instruct the valuation of the property. After the satisfactory valuation and underwriting Nationwide will approve your mortgage application.
How Long Does the Nationwide Mortgage Porting Take?
A porting application can be paper based or online. Online applications can reach Nationwide immediately, depending on the time of application i.e. during busy peak times. If porting is for a like to like mortgage, then the process will be quicker; otherwise, porting applications can be similar to a new purchase application. It can take 2-6 weeks to complete the porting application.
Can a Mortgage Broker Help With Nationwide Mortgage Porting?
Many mortgage borrowers ask how long does a mortgage application take through mortgage broker? Our mortgage advisors are expert in mortgage porting. Mortgage brokers know the lending criteria of a multitude of banks, which will help you to prepare the porting application. Mortgage brokers can run through the terms of your current mortgage, run the income affordability, and submit the mortgage application. Your mortgage broker can save you a lot of time and effort while getting the approval in no time.
Your mortgage broker can advise you on if porting with Nationwide even is the best option for you, and if it isn’t, they’ll be happy to help find alternatives.
Different Types of Nationwide Porting Applications
Porting applications can be different to each other depending on your borrowing needs for your new property. For example, you might need to borrow more or less than what’s left on your existing mortgage that you are porting. We have set some examples of Nationwide mortgage porting
Nationwide mortgage porting with additional borrowing
When you need to borrow more than the amount on your existing mortgage. Additional borrowing is subject to meeting our lending criteria of Nationwide.
For example:
Your current property value is £300,000, with an existing Nationwide mortgage of £200,000. From the sale of your existing property, there is £100,000 equity.
The new property purchase price is £350,000. Your deposit is £50000 You will transfer £200,000 of the existing mortgage with the existing product rate and additional mortgage of £100,000 is borrowed on a new mortgage loan to make up the new property price.
Partial Port or borrowing less
If you need to borrow less than the amount on your Nationwide existing mortgage. You can port the smaller loan amount to new property. However, the difference must be repaid on completion of the new loan, and an early repayment charges will apply to this amount.
The property value is £300,000 with an existing mortgage loan of £200,000.
The new property purchase price is £150,000. Your deposit is £50000 so the remaining £100,000 of the existing mortgage is ported to the new property. This means that the mortgage is reduced to £100,000 which will be refunded to Nationwide as it is no longer needed and is subject to an Early Repayment Charge.
Like for like Nationwide Mortgage Porting.
If you need to borrow the same amount that’s left on your existing mortgage, the term is the same and doesn’t require any other changes or new borrowing. This can be the easiest porting application.
We at MariannaFS offer fee free mortgage advice. Get in touch with us to get your mortgage porting sorted in no time.
FAQs
Is there a penalty for Nationwide mortgage porting?
Your mortgage rates, term, loan amount and conditions will stay the same after the transfer of mortgage from one property to a new one. Because porting doesn’t require you to break your mortgage contract, you won’t incur prepayment penalties known as early repayment charges.
What are the problems with mortgage porting with Nationwide?
You’ll have to reapply for your mortgage when you port and may not fit the lender requirements. As when porting a mortgage, you will have to work as per Nationwide terms which may not be good option if your income has change or change in credit profile. All this could be resulting in changing the lender.
Is it Worth Porting a Nationwide Mortgage?
Porting a mortgage rate is when you buy a new home and effectively take your mortgage with you. It could be useful if you have a better mortgage rate that you want to keep, as you’ll retain the current deal. Which can save you on mortgage payments. Porting can be very beneficial if you are on a lower rate and you fit the lender’s requirements.
What happens if Nationwide porting application rejected?
For any given reason if porting application fails then your lender will inform you or your mortgage broker if you are using one. Having a good mortgage broker on your application can quickly find the alternative lender for your new property.
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