Nationwide mortgage porting

[dwilli1503]

We own a house valued at 220k. We have debt of 15k. We would like to move to a house valued at 200k.

We have had our nationwide mortgage for 7 years and have 27 years remaining and 95k outstanding.

We have just done the application online using the nationwide moving app but it says declined and that they they cannot lend the amount needed. But we aren't borrowing any more & we would be in a better situation because we would be debt free.

Does anyone have any experience of porting/moving with nationwide? We did move 4 years ago but the house prices were the same.

We ported our mortgage with nationwide and borrowed quite a bit more on top. Why not go in and see them?

Speak to a mortgage broker or have a look on the MSE forums? What's your credit rating like?

It might be the loan to value because you are going from 43% to 47% , although after doing the calculations it seems unlikely. Has there been a change in salaries or circumstances since your last mortgage (baby/childcare costs, etc).

If you want to borrow more than the affordable amount, but no more than your current mortgage, then you are only able to if you either reduced your LTV or keep it the same. So if you are buying a less expensive house, you would need to reduce your mortgage to keep the same LTV. This is so that the risk to nationwide is not increased.

Affordability is unlikely to be increased even if you appeal unless you do this because the new modelling since MMR is so personalised to your individual circumstances already.

However, do go in and speak to an adviser to get accurate affordability as they will be able to tell you exactly what can and can't be taken into account with regards to income and outgoings. I assume you didn't include the loan as an outgoing when you did it on line as you are paying it off (I think there is an option to put it in a box saying loans being paid off on or before completion)

Are you using the £20k equity difference to reduce the mortgage?

Thank you Eminybob. The ltv when we took the mortgage 7 years ago was 90%. When we moved house 4 years ago, the house was worth 117k. It is now worth 220k.

No, we will pay off the debt with that caroldecker.

Yeah, unfortunately they only look at the here and the now, LTV and affordability wise. Lending has gotten tougher sadly. It's daft as you know you can afford the mortgage, but from experience with trying to appeal these type of scenarios, the LTV would have to be reduced.

They would rather you used the equity to do that rather than pay off the debts (but catch 22, if you didn't pay off the debts you would be able to borrow even less)

Ok, I understand.
However, one last thing, on the NW website app form , they estimate our house value at 143k, giving an LTV of 66%. We know it is worth a lot more than this. So, if we buy the new house for 200k the LTV would be 47%. So do you think they'll consider that reduced?

We just want to be sure of our options.

(The alternative is that we just sell the house, pay off the 95k mortgage & then just sit on money for a few years until we buy again.)

Have you spoken to a mortgage advisor? They're you're best bet for finding out if this is doable or not. Good luck. Mortgages are an incredibly stressful game!

*your

Good question, I'm not actually sure if they would use your selling price or their estimate.

Either way, the application would need to be referred to an underwriter due to It being outside affirdability so you really do need to speak to an adviser either in branch or in the phone.

Thank you. We are calling NW today.

How did you get on?

Sorry for delay. We have now spoken with NW and they can't give us an answer. They will only tell us once we have made an offer on a property and had it accepted. So we are no further informed. I think we are just going to sell the house, pay off debt and invest cash by buying a property outright elsewhere in the uk to rent.