Thinking of moving house in the UK and wondering if you can take your current Nationwide mortgage with you? You're in the right place! Porting your mortgage can be a smart financial move, potentially saving you thousands in Early Repayment Charges (ERCs) and allowing you to retain a favourable interest rate. But it's not always straightforward. This comprehensive guide will walk you through the process, step by step, ensuring you're well-equipped for your Nationwide mortgage porting journey.
Ready to make your move a whole lot smoother? Let's dive in!
 |
| How To Port Mortgage Nationwide |
The Nationwide Mortgage Porting Process: A Step-by-Step Guide
Porting your mortgage essentially means transferring your existing mortgage product and its terms from your old property to your new one. While it might sound like a simple 'copy and paste,' it's more akin to applying for a new mortgage, but with the added benefit of potentially avoiding hefty charges.
Step 1: Understand What Porting Means for YOU
Before you even think about looking at new properties, it's crucial to understand what porting your Nationwide mortgage truly entails and if it's the right option for your circumstances.
-
What is Porting?
- Porting is the process of paying off your existing mortgage with Nationwide and taking out a new mortgage with them on your new property, but with the same terms and interest rate as your old one.
- The key advantage is that you typically avoid Early Repayment Charges (ERCs) that would usually apply if you redeemed your mortgage before your current deal ends.
- It's not just a simple transfer; Nationwide will re-assess your financial circumstances and the new property.
-
Why Port with Nationwide?
- Avoid ERCs: This is often the biggest driver. If you're locked into a fixed-rate or tracker deal, breaking it usually incurs significant charges. Porting can circumvent this.
- Keep Your Rate: If you have an attractive interest rate that's no longer available in the market, porting allows you to retain it.
- Familiarity: Staying with your current lender, Nationwide, can sometimes make the process feel less daunting than starting afresh with a new provider.
-
Considerations Before You Start:
- Changes in Financial Circumstances: Have your income or outgoings changed since you took out your original mortgage? Nationwide will re-evaluate your affordability. A dip in income or an increase in debt could impact your ability to port, especially if you need to borrow more.
- New Property's Value: The new property will need to be valued. This valuation will influence how much Nationwide is willing to lend.
- Legal and Valuation Fees: While you might avoid ERCs, you'll still incur legal costs (for conveyancing) and potentially valuation fees for the new property.
- Loan-to-Value (LTV): Your LTV might change depending on the new property's price and your deposit. This can affect the rates available or the amount you can borrow.
Step 2: Check Your Current Nationwide Mortgage Terms
This is a critical initial step. You need to know the specifics of your current mortgage to determine its portability and any potential implications.
-
Locate Your Mortgage Offer Document: This document (or a variation agreement) will detail the terms and conditions of your existing mortgage.
-
Key Information to Look For:
- Is your mortgage portable? Most Nationwide mortgages are, but it's essential to confirm.
- Early Repayment Charges (ERCs): Understand when your current deal ends and what the ERCs would be if you didn't port. This highlights the potential saving.
- Remaining Term: How much time is left on your current mortgage deal?
- Outstanding Balance: The exact amount you still owe.
- Overpayment Allowance: While not directly related to porting, it's good to know if you plan to inject extra capital from your sale.
-
How to Access This Information:
- You can often find this information by logging into Nationwide's Mortgage Manager via their Internet Bank or Banking App.
- Alternatively, you can call Nationwide's mortgage servicing team directly.
Step 3: Assess Your Financial Situation (Affordability Check)
Even though you're an existing customer, Nationwide will conduct a fresh affordability assessment. This is to ensure you can comfortably afford the mortgage on your new property, especially if you plan to borrow more.
Tip: Don’t skim — absorb.
- Gather Your Documents: Be prepared to provide evidence of your income and outgoings. This typically includes:
- Latest Payslips (usually 3 months' worth)
- P60 (annual statement of earnings and tax)
- Bank Statements (showing income and regular outgoings)
- Proof of any other income (e.g., benefits, rental income)
- Details of all your debts (credit cards, loans, car finance)
- Self-employed applicants will need their latest 2 years of HMRC tax calculations and tax year overviews.
- Nationwide's Criteria:
- They will review your income, outgoings, and credit rating. Any significant changes since your original application could affect the outcome.
- Loan-to-Value (LTV) limits will apply to the new property.
- Maximum age limits also apply (often up to 75 at the end of the mortgage term).
Step 4: Get a Decision in Principle (DIP)
This is a good preliminary step to understand how much Nationwide might be willing to lend you for your new property.
- What is a DIP? Also known as an Agreement in Principle (AIP) or Lending Certificate, a DIP provides an indication of the maximum amount Nationwide would be prepared to lend you.
- How to Get One: You can typically obtain a DIP online through Nationwide's website. They will conduct a 'soft' credit check at this stage, which won't affect your credit rating.
- Benefits: A DIP can be useful when viewing properties, as estate agents often request it as proof of your borrowing capacity.
Step 5: Find Your New Property and Make an Offer
With a clearer understanding of your borrowing power, you can now confidently search for your new home.
- Property Valuation: Once your offer is accepted, Nationwide will need to value the new property. This is crucial for them to assess the security of the loan. A valuation fee may be payable by you.
- Property Type: Be aware that certain property types (e.g., non-standard construction, properties with unusual features) might be more difficult to mortgage or port to.
Step 6: Submit Your Full Mortgage Porting Application
This is where the formal process begins. You'll work with Nationwide (or your mortgage broker) to complete the extensive application.
 |
- Application Form: The porting application can be quite detailed, sometimes running to 20 pages or more. It's often paper-based, which can add to the processing time.
- Additional Borrowing (If Required):
- If your new property is more expensive and you need to borrow more than your current mortgage balance, this will be assessed as 'additional borrowing.'
- This additional borrowing will usually be on a separate product with its own interest rate and terms, which could differ from your ported rate. This means you might end up with two distinct mortgage parts on your new property.
- Nationwide will conduct further affordability checks for this additional borrowing.
- Documentation Submission: Ensure all required documents (income proofs, identification, property details) are submitted accurately and promptly to avoid delays.
- Mortgage Broker Assistance: Many find that using an experienced mortgage broker can significantly streamline this step. They can help you:
- Ensure all necessary information is provided.
- Pre-populate forms.
- Liaise with Nationwide on your behalf.
- Negotiate terms if possible.
Step 7: Underwriting and Approval
Once your application is submitted, Nationwide's underwriters will thoroughly review all your information and the property valuation.
QuickTip: A quick skim can reveal the main idea fast.
- Credit Checks: A full credit check will be performed on all applicants.
- Affordability Assessment: A detailed assessment of your income and outgoings will be conducted.
- Property Survey: Beyond the basic valuation, Nationwide might require a more in-depth survey depending on the property's age and condition.
- Legal Processes: Your solicitor will handle the legal aspects of the sale of your old property and the purchase of your new one. They will liaise with Nationwide's legal team.
- Mortgage Offer: If everything is satisfactory, Nationwide will issue a formal mortgage offer. This document is legally binding and will outline all the terms and conditions of your new (ported and potentially additional) mortgage. Mortgage offers are typically valid for 90 to 180 days.
Step 8: Completion and Fund Transfer
The final stage involves the legal completion of both property transactions.
- Simultaneous Completion: Ideally, the sale of your old property and the purchase of your new property will complete on the same day. This ensures a seamless transfer of funds and minimizes the period you might be without a mortgage.
- Redemption and New Mortgage: The funds from the sale of your old property will be used to pay off your existing Nationwide mortgage. Simultaneously, the new (ported) mortgage funds will be drawn down for your new property.
- Early Repayment Charge Refund (If Applicable): If there's a short delay between selling your old property and buying your new one, you might initially be charged an ERC. However, Nationwide typically refunds this in full if you complete the port within a specified timeframe (often 180 days). Ensure you clarify this with Nationwide.
Important Considerations for Nationwide Porting
- Timeframe: Porting a mortgage can take several weeks, sometimes longer, similar to a new mortgage application. Factors like property valuation, financial assessment, and legal processes all contribute to the timeline. Starting early is key.
- Mortgage Broker Value: For many, the complexity of porting, especially with additional borrowing or changing circumstances, makes a mortgage broker an invaluable asset. They have expertise, understand Nationwide's criteria, and can navigate the paperwork efficiently.
- "Like-for-Like" Porting: If you are porting the exact outstanding balance to a property of similar value without needing additional borrowing, the process can sometimes be quicker. However, any deviation makes it more like a new application.
- Interest-Only Mortgages: If any part of your existing borrowing is on an interest-only basis, you must have an acceptable repayment strategy in place for the ported mortgage.
- Changing Term or Repayment Type: You can typically change your mortgage term or repayment type as part of a porting application, but this will also trigger affordability assessments.
Frequently Asked Questions (FAQs)
How to check if my Nationwide mortgage is portable?
You can check if your Nationwide mortgage is portable by reviewing your original mortgage offer document or variation agreement. Alternatively, log into Nationwide's Mortgage Manager via their Internet Bank or Banking App, or call their mortgage servicing team directly.
How to avoid Early Repayment Charges when porting with Nationwide?
You typically avoid Early Repayment Charges (ERCs) when you port the full balance of your existing Nationwide mortgage to a new property and the sale of your old property and purchase of your new one complete simultaneously. If there's a short delay, Nationwide may refund the ERC if the port completes within a specific timeframe (e.g., 180 days).
How to get a Decision in Principle (DIP) from Nationwide for porting?
You can get a Decision in Principle (DIP) from Nationwide online through their website. This will give you an indication of how much they are prepared to lend.
Tip: Train your eye to catch repeated ideas.
How to apply for additional borrowing when porting my Nationwide mortgage?
If you need to borrow more than your current outstanding mortgage balance, you can apply for additional borrowing as part of your porting application. This usually results in a separate new mortgage product alongside your ported one, each with its own terms and interest rate.
How to prove my income for a Nationwide mortgage porting application?
You will need to provide proof of income such as your latest payslips (usually 3 months), your P60, and bank statements. If self-employed, you'll need your last two years' HMRC tax calculations and tax year overviews.
How long does it take to port a Nationwide mortgage?
The timeframe for porting a Nationwide mortgage can vary but typically takes several weeks, similar to a new mortgage application. Factors like property valuation, financial assessment, and legal processes influence the duration.
How to deal with legal fees when porting my Nationwide mortgage?
You will be responsible for legal fees associated with the sale of your old property and the purchase of your new one. Your solicitor will provide a breakdown of these costs, which can include conveyancing fees, search fees, and Land Registry fees.
Reminder: Revisit older posts — they stay useful.
How to change the mortgage term when porting with Nationwide?
You can typically request to change your mortgage term (extend or reduce) as part of your Nationwide porting application. However, this will trigger a new affordability assessment to ensure the new monthly payments are manageable.
How to use a mortgage broker for Nationwide porting?
An experienced mortgage broker can guide you through the entire Nationwide porting process. They can assess your eligibility, help gather necessary documents, complete the application form, liaise with Nationwide on your behalf, and provide advice on additional borrowing options.
How to check my new property's eligibility for Nationwide porting?
Nationwide will conduct a valuation of your new property as part of the porting process. This valuation will determine its suitability for the mortgage and influence the amount you can borrow. Certain property types might have specific lending criteria.
 |
