Mortgage porting headache

[jb2410]

Hi all,

We’re due to move house in a couple of weeks. We’re porting the existing mortgage from our current house to the new property due to being one year into a 5 year fix and taking a second mortgage to cover the balance.

We owe approx £78300 ish on current house, which has sold for £128k and are borrowing just over £100k on second mortgage to make a round £180k of borrowing between the two.

Purchase price of new property is £225k, so should be just under 5k ish balance over toward fees. The solicitor’s bill has landed today, looking an additional £3200. As part of the breakdown, they’re giving a redemption charge of £81640 for the existing nationwide mortgage to be ported. Looking online at nationwide’s calculators I suspect (hope) this figure includes an ERC of £3500, however we were led to believe this wouldn’t be chargeable as the existing mortgage was to come with us to the new property.

Contracts have been exchanged and sale and completion is to take place on the same day. Has someone, somewhere got this wrong? Please put my mind at rest lol it’s Christmas Eve, nowhere is open to speak to anyone and the mrs is decidedly unhappy...

Thanks

[Nickbrapp]

Sounds like they’ve got it wrong

I asked my bank about porting, they told me you don’t pay if you’re redeeming abs starting a new mortage the same day

You only pay it if you where to not start the new one the same day and even then so long as your new payments start within 3 months they refund the ERC

[jb2410]

Thanks, yes nationwide told us the same thing when we applied for the new mortgage. Don’t know for sure that the etc is what the total redemption figure includes, but I am reasonably confident.

Just landed at an unfortunate time in that we can’t check with nationwide themselves, but fingers crossed it’s all been a mistake.

[Darkslider]

Nickbrapp said:

Sounds like they’ve got it wrong

I asked my bank about porting, they told me you don’t pay if you’re redeeming abs starting a new mortage the same day

You only pay it if you where to not start the new one the same day and even then so long as your new payments start within 3 months they refund the ERC

If this is accurate might you be due a refund of the ERC once the new mortgage is up and running? I'd have thought that would have been explained to you as part of the procedure if so but we are in strange times currently!

[Sarnie]

The ERC will be refunded to your new mortgage once completed.......

[quinny100]

I ported with Nationwide in 2018 and I don't recall anything around paying an ERC or it being credited back. We just have 2 mortgage account numbers with separate balances. The redemption figure on the completion statement didn't include an ERC.

Have you got a copy of your mortgage offer from Nationwide? What does Part 4 - Description of this mortgage say? It should be clearly stated there if it's a port.

It may just be an admin cock up at your solicitors and they've added the ERC on in error.

[jb2410]

Thanks all, no mention on mortgage offer paperwork of an erc so hopefully just an error with the solicitor. I will ring nationwide on Tuesday to confirm in any case, just wanted some sort of confirmation I wasn’t miles out this morning when I had first read the letter. Nothing like the prospect of a 3k bill to dampen the festive cheer

[UnclePat]

I did exactly the same at the start of the year - porting of existing mortgage (keeping 5yr Fix deal) & taking a new, second mortgage (both with the same provider).

No ERC paid due to porting, though it required some coordination to achieve.