NatWest Porting Mortgage Explained
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What is Mortgage Porting?
Porting refers to the process of moving your existing mortgage from one property to the next with minimal disruption or hassle. This option may prove particularly advantageous if your interest rate has become more favourable. Almost all NatWest mortgages are portable, making the process relatively straightforward for existing customers.
The Benefits of NatWest Mortgage Porting
Porting your existing NatWest mortgage comes with many advantages that can make the transition more seamless and financially advantageous. Below are a few key benefits:
Maintain Your Current Mortgage Deal: Porting allows you to keep your mortgage on your current property, including its interest rate and terms. This may be especially advantageous if your interest rate is favorable or if you’re midway through a fixed-rate deal.
Avoid Early Repayment Charges: By porting your existing mortgage with its current deal, early repayment fees – which could run to thousands of pounds – can be avoided, significantly lowering moving costs and making life simpler for everyone involved.
Flexibility: Porting can provide flexibility, as it enables you to move home without having to renegotiate all of the terms of your current mortgage agreement, making the move much less taxing and stress-inducing.
Potential for Additional Borrowing: If you need additional borrowing power for a more expensive property purchase, NatWest offers top-up mortgages as a convenient way to increase borrowing without changing existing arrangements. These sit alongside your current mortgage deal while giving you increased borrowing capability without switching.
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How to Port Your NatWest Mortgage
NatWest Mortgage can make moving home easier when using their mortgage product – you’ll take your existing balance at your current interest rate and no early repayment charge may apply – all dependent on what terms and conditions exist in your existing deal, which can be found within either your offer document or variation agreement document.
If you need a bigger mortgage as you are moving to a more expensive property, NatWest can assist with applying for a top-up mortgage – this will sit alongside your existing mortgage but must meet their lending criteria again as your income, outgoings and credit rating may have altered since taking out your initial mortgage. Maybe a quick chat with the YesCanDo Money mortgage team could be worthwhile.
How a Mortgage Broker Can Help You Port Your Mortgage
Navigating the process of porting your mortgage can be complex, and this is where a mortgage broker can provide invaluable assistance. Here’s how a mortgage broker can help:
Expert Advice: Working with an experienced mortgage broker will ease the porting process for you. They can explain the terms and conditions of your current mortage deal, along with any associated costs or benefits, before offering expert guidance as to whether porting is suitable in your particular circumstances.
Assistance with Applications: Applying for a new mortgage or a top-up mortgage can be a daunting task. A mortgage broker can help you fill out the necessary paperwork, ensuring that all details are correct and improving your chances of approval.
Negotiating with the Lender: Mortgage brokers have established relationships with various lenders, including NatWest. They can negotiate on your behalf, potentially securing better terms or speeding up the approval process.
Time and Effort Saved: Utilising a mortgage broker allows you to save both time and effort during the porting process. They’ll handle most of the work for you so you can focus on other aspects of your move instead.
Access to Mortgage Affordability Calculators: Mortgage brokers have access to tools like a mortgage affordability calculator that can give a rough estimate of how much of a mortgage would be possible based on your income and outgoings – helping you plan for financial success more easily.
Understanding Early Repayment Charges: Working with a mortgage broker will enable you to understand the implications of an early repayment charge, and how porting your existing mortgage can help avoid them.
Remember, while a mortgage broker can provide valuable assistance, it’s important to choose a broker who is reputable and has a good understanding of the mortgage market. Always check their credentials and ask for references if necessary.
Case Study: Successful NatWest Mortgage Porting
NatWest Mortgage Porting: Important Considerations
While porting your current NatWest mortgage can have financial benefits, it’s important to consider all aspects of the process. Here are some key considerations:
Loan-to-Value Ratio: When moving to an affordable property, your loan-to-value ratio could increase, which may have an effect on your mortgage terms and requirements.
Change in Financial Circumstances: If your income or outgoings have changed significantly since taking out your existing mortgage, and therefore no longer meet its lending criteria for top-up financing, obtaining another may no longer be a viable option.
Early Repayment Charges: While porting can help avoid an early repayment charge it is still essential that you understand the details of your current mortgage deal and any potential costs associated with early repayment.
Property Valuation: The new property will need to be valued as part of the porting process. This could potentially affect the amount you can borrow. A valuation fee could be payable although some lenders do not charge a fee.
Additional Borrowing: If you need to borrow more for a more expensive property, the additional amount will be subject to the lender’s current rates and underwriting criteria.
Legal and Valuation Fees: There may be fees associated with the legal work and property valuation involved in porting a mortgage.
Remember, seeking professional advice when considering porting your current mortgage deal is always advisable to ensure you make the best decision for your circumstances.
FAQs
Can I transfer my NatWest mortgage offer to another property?
Yes, you can transfer your NatWest mortgage offer to another property through a process known as porting. This allows you to move your existing mortgage deal to a new property, subject to meeting NatWest's underwriting criteria and the terms of your current mortgage deal.
Are all mortgages portable?
Not all mortgages are portable. However, the majority of UK mortgages, including those from NatWest, are portable. You can check your existing mortgage offer or contact your lender to find out if your mortgage is portable.
How do I know if my mortgage is portable?
You can find out if your mortgage is portable by checking your latest mortgage offer from your lender. This document will clearly state whether your mortgage is portable and if you need to pay an early repayment charge if you decided to move your mortgage.
Can I port my mortgage to a more expensive property?
Yes, you can port your mortgage to an expensive property; however, borrowing more will likely be necessary and will increase the size of the existing mortgage balance. In order to qualify for such a larger mortgage amount, your income needs to increase along with good credit ratings - all mortgage lenders use mortgage affordability calculators when determining how much a borrower can borrow.
I only have a small mortgage, is it worth porting?
Sometimes it's not worth porting a small mortgage. However, before you make a decision, it's worth getting advice from a mortgage adviser who can run the figures for you.
My interest rate is not very good, is it worth porting?
If your current interest rate isn't favourable, it might be worth looking at new mortgage deals. Sometimes, a new mortgage deal could be lower, which might make it more beneficial not to port your mortgage. However, you'll need to weigh up the potential savings from a lower interest rate against the cost of early repayment fees.
How long does it take to port a mortgage?
Timeframe for mortgage approval depends on both individual circumstances and mortgage provider processes; typically however, this process takes several weeks from application to closing; so it is advisable to start early when planning to relocate.
Is porting a mortgage hard?
Moving to a mortgage can be complex, involving numerous steps such as an appraisal of your property and possibly an overhaul of your financial circumstances. But with help from an experienced mortgage broker or lender, this process can become simpler.
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 are the disadvantages of porting a mortgage?
Disadvantages of porting a mortgage can include potential fees for property valuation and legal costs. Also, if you need to borrow more, the additional amount will be subject to the lender's current rates and lending criteria, which could be less favourable.
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.
How long does porting a mortgage take?
Timeframe for getting a mortgage varies; typically though, the process takes several weeks and 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?
Porting your mortgage may be beneficial if you want to maintain a favourable rate or avoid an early repayment charge, though you must carefully consider all factors, including potential costs and changes in financial circumstances.
A Conclusion on Porting a Mortgage NatWest
Porting your mortgage with NatWest can be a beneficial move when you’re moving home. It allows you to keep your current mortgage deal and potentially avoid an early repayment charge. However, it is essential that you first gain an understanding of the process and its financial repercussions in order to make an informed decision that fits into your circumstances.
Remember, your home may be repossessed if you do not keep up repayments on your mortgage. Always seek professional advice before making significant financial decisions.
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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
