Nationwide Porting Mortgage Explained
Moving home can be a stressful experience, particularly if you have a great mortgage deal you don't want to lose. But there’s a way to make this process smoother – porting your mortgage with nationwide. Porting allows you to transfer your current mortgage deal from your existing property to a new property and avoid an early repayment charge. In this guide, we look at how a Nationwide porting mortgage works, including the benefits, potential challenges, and steps in transferring your existing mortgage to a new property.
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What is Mortgage Porting?
Porting means moving your mortgage from one property to another with minimal fuss and bother. This might be particularly useful if your interest rate has improved. Most Nationwide mortgages are portable, so it’s relatively easy for existing customers. However, sale and purchase transactions are expected to occur simultaneously and can impact the process.
Benefits and Considerations of Nationwide Mortgage Porting
Porting your existing Nationwide mortgage has many benefits that make the move smoother and more financially beneficial. Here are a few:
- Keep Your Current Mortgage: Porting allows you to keep your mortgage on your existing property, including the interest rate and terms. This is especially useful if your interest rate is good or you’re halfway through a fixed-rate deal.
- Avoid Early Repayment Charges: By porting your existing mortgage product, you can avoid the early repayment charges—which could be thousands of pounds—and make moving cheaper and easier for everyone involved.
- Flexibility: Porting gives you flexibility as you can move home without having to renegotiate all of the terms of your current mortgage agreement, making the move less painful and stressful.
- Additional Borrowing: If you need more borrowing power for a more expensive property purchase, Nationwide Building Society offers top-up mortgages as a convenient way to increase borrowing without changing existing arrangements. These sit alongside your current mortgage deal and give you more borrowing power without switching. Understanding the implications of a new property purchase is crucial when considering additional borrowing.
Things to Consider
- Loan-to-Value Ratio: When buying a more expensive property your loan-to-value ratio could increase, which may affect mortgage terms and requirements.
- Change in Circumstances: If either your income or outgoings have changed significantly since you took out your existing mortgage and no longer meet the criteria for top-up lending then getting another may not be an option.
- Early Repayment Fees: Porting may help you avoid early repayment fees but you must fully understand the terms of your mortgage and interest rate and any costs involved with early repayment.
- Property Valuation: The new property will need to be valued as part of the porting process. This could affect how much you can borrow. A valuation fee may be payable although some lenders don’t charge a fee.
- Legal and Valuation Fees: Mortgage loans involve legal work and property valuation fees that need to be paid before you take out a loan.
How to Port Your Nationwide Mortgage
Porting your mortgage with Nationwide Building Society is a simple process that requires the right help. Here’s a step-by-step guide:
Step 1: Talk to a Mortgage Broker
The first step in the porting process is to talk to a mortgage broker like us. We’ll give you bespoke advice for your situation and explain the porting process.
Step 2: Check Your Existing Mortgage Terms
Check the terms and conditions of your existing mortgage deal. This can be found in your mortgage offer document or variation agreement document. You need to know your mortgage terms to see if porting is for you.
Step 3: Check Your Finances
If you’re moving to a more expensive property and need a bigger mortgage, Nationwide will need to check your finances before lending more. They’ll look at income, outgoings and credit rating and credit history – any changes that have occurred since you took out your original mortgage.
Step 4: Apply for a Top-Up Mortgage (If Required)
If you need more borrowing power, Nationwide can help you apply for a top-up mortgage. This will sit alongside your existing mortgage but must meet Nationwide’s lending criteria.
Step 5: Property Valuation
Nationwide will need to value the new property as part of the porting process. This could affect the amount you can borrow. Be prepared for this step and any valuation fees.
Step 6: Complete the Porting Process
Once all the steps are done and the porting application is approved you can complete the process. Remember the amount you choose at application will be applied to your new loan even if you make payments towards it between application and completion.
Remember every situation is different so this is only a guide. Always talk to a mortgage broker for bespoke advice.
Case Study: Nationwide Mortgage Porting
How a Mortgage Broker Can Help You Port Your Existing Nationwide Mortgage
Porting your mortgage can be tricky and this is where a mortgage broker can help. Here’s how:
Expertise: Working with an experienced mortgage broker will make the porting process easier for you. They’ll explain the terms and conditions of the mortgage deal with your existing mortgage lender, and any costs or benefits involved, before advising whether porting is right for you.
Application Assistance: Applying for a mortgage or top-up can be a long and complicated process, so having a broker to guide the application process and fill out all the paperwork could make the application smoother and increase chances of approval.
Lender Negotiation: Mortgage brokers have relationships with various lenders, including Nationwide. They can negotiate on your behalf, potentially getting better terms or speeding up the approval process.
Time and Effort Saved: Using a mortgage broker will save you time and effort when porting. They’ll do much of the hard work for you so you can focus on other parts of your move instead.
Early Repayment Fees: Working with a mortgage broker will help you understand the implications of an early repayment charge and how porting your mortgage rate can help you avoid it.
Remember while mortgage brokers can be very helpful it’s important you choose one with a good reputation in the mortgage market and good credentials – always check credentials and ask for references if needed.
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Frequently Asked Questions
What are the disadvantages of porting a mortgage?
Porting a mortgage can come with potential fees for property valuation and legal costs. If you need to borrow more, the additional amount will be subject to the lender's current fixed rate mortgage and lending criteria, which could be less favourable. Also, if your financial circumstances have significantly changed, you may not meet the lender's current lending criteria.
Is it difficult to port a mortgage?
Porting a mortgage can be complex as it involves several steps such as property valuation and a review of your financial circumstances. However, with the assistance of an experienced mortgage broker or lender, the process can be made simpler and more manageable.
How long do I have to port my mortgage?
The timeframe for porting a mortgage varies, but typically, the process takes several weeks. This includes property valuation, financial situation analysis, and processing application forms. Starting early can help ensure a seamless transition.
Is it a good idea to port a mortgage?
Whether porting a mortgage is a good idea depends on your personal circumstances. If you have a favourable interest rate or want to avoid an early repayment charge, porting can be beneficial. However, it's important to consider all factors, including potential costs and changes in financial circumstances.
When can porting a mortgage be refused?
Yes, porting a mortgage could be denied if you do not meet the lender's current lending criteria, your financial circumstances have significantly altered, or your new property does not comply with their requirements. Therefore, it's always wise to discuss this possibility with both lender and broker beforehand.
Is there a fee to port a mortgage?
While there are no product or booking fees when porting, fees may apply to any new products taken as part of the new house purchase. Also, there may be fees associated with the legal work and property valuation involved in porting a mortgage.
Is it better to port a mortgage?
Whether it's better to port a mortgage depends on your personal circumstances. If you have a favourable interest rate or want to avoid an early repayment charge, porting can be beneficial. However, it's important to consider all costs and potential new mortgage deals.
What is the timescale for porting a mortgage?
The timescale for porting a mortgage varies, but typically, the process takes several weeks. This includes property valuation, financial situation analysis, and processing application forms. Starting early can help ensure a seamless transition.
A Conclusion on Porting a Mortgage Nationwide
Porting a mortgage nationwide with Nationwide can be a good idea when buying a new property as it allows you to keep your existing Nationwide deal and avoid an early repayment fee. You will then be able to choose a new deal with Nationwide for any additional borrowing you need. Understanding the implications of a new property purchase when porting a mortgage is crucial to make an informed choice that suits your circumstances.
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Grant Humphries (CeMAP)
Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding mortgage lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape
