Are you looking to move home? Do you have an existing mortgage with Nationwide Building Society that you would like to move with you to your new property? If so, you have come to the right place. The Mortgage Broker Limited has the experience required to assist you with your requirements.
What does it mean to port your mortgage?
Oftentimes when people move from one property to another, they will get a new home loan to cover the purchase. This might be a bigger loan than their current one, to ensure they can borrow enough to fund the purchase.
However, this is not always required. If you have an existing loan with favourable terms and a good interest rate, you may wish to keep it. Porting a mortgage describes the process of moving your existing loan to the new property. You will retain the interest rate payable, the terms, and any charges applicable to an early repayment of the loan.
Can I transfer my Nationwide mortgage?
We come across many clients wishing to take their home loans with them when they move. This certainly applies to many of those who have older Nationwide mortgage accounts. Some of these accounts have very attractive standard variable rates, usually starting at 2.5%. It would make sense to retain such a rate if you can.
Most loans provided by the Nationwide Building Society are portable and can therefore be ported if you are purchasing a new property. It is possible that your new property may be cheaper than your existing one, meaning that you would not need to borrow the same amount left on your existing loan. If that is the case, there may be an Early Repayment Charge involved. This would be charged on the amount of the loan that would not be ported under these terms.
For instance, let’s assume your current mortgage is for £400,000 and the loan required for your new property would be £350,000. This would mean any Early Repayment Charge attached to your mortgage would be applied to the £50,000 difference.
Can you port a mortgage and borrow more?
Do you require a bigger loan than the amount your existing home advance is worth? If so, you would need to port your existing loan over when you purchase your new property. The difference required to buy the property would need to be covered by a new mortgage from the current Nationwide range.
For instance, your current loan might be worth £300,000 and you may require £350,000 to cover the new property. You can port over your loan for £300,000 and choose a new mortgage to provide the extra £50,000 of coverage required.
What happens when you port your mortgage?
At present, mortgage porting cannot be done online. This makes the process more involved than it would otherwise be. Everything must be done on paper, although your broker can help you with this.
The first step is to provide your broker with some personal details. It is important to make sure you fulfil the lender’s affordability requirements. This means you must have all the necessary information regarding your income and expenditure. Make sure you have this to hand as it makes this part of the process much faster.
Once this is complete – and assuming you meet the necessary requirements – a good broker should be able to pre-populate your application on your behalf. The application form covers 20 pages, so this is a good service to use and will save you time.
What will the lender need to see to support your porting application?
There are several obvious items that are required:
- Your latest payslips
- Bank statements
Your broker will inform you of anything else that is required to support the application. They must also make sure they provide details of the mortgage accounts that are to be ported over. If you require additional lending in the form of a new deal (as described above), details of this should also be provided.
How long does mortgage porting take?
The process of submitting a paper application does incur delays in the process which is frustrating.
woman puling her hair out
Online submission, if it was available, would mean Nationwide would receive your application immediately. However, since this is not an option, there is the obvious delay of posting the application to consider. This could be anything up to a week depending on the time of year it is posted. Christmas posting services generally slow things down a little, for example. However, this applies to all lenders, so Nationwide is no different in that respect. It is merely part of the process as it stands at present.
Is it easy to port a home loan with Nationwide?
This is a straightforward process, even though the completion of the 20-page application may seem daunting to some. This is one of the reasons why we recommend contacting us to secure the services of one of our experienced brokers. They can guide you through the process and make sure everything is done in the right way. This alone can save time and delays.
Extra care and attention are needed to ensure all the finer details of the process are covered. It is imperative to make sure the lender understands what you are trying to achieve. That may be a simple case of taking your mortgage with you, or a case of taking out an additional mortgage to cover any shortfall in the amount required for your new property purchase.
Call the team at The Mortgage Broker Limited today for advice and guidance
We would be happy to assist in your new purchase. We have years of experience in dealing with this type of paperwork and we know what to expect and what must be done to achieve the best outcome. This alone should offer you some peace of mind when you need it most. Moving home is stressful enough. You can ease some of that stress by contacting us to enquire about our services.
Contact our team today to discuss your requirements or fill in our online mortgage enquiry form today and we will be in contact with you.