Santander trying to block me porting 0.99% deal

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  • Thrugelmir
    Thrugelmir Posts: 89,546
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    ACG wrote: »
    My understanding, is that the port is a feature of the mortgage, that feature can not be removed as it forms part of the contract. So presuming they meet the current criteria then there is no reason why they cant port?

    The criteria is set at the discretion of the lender. To that I would add there's no right to a new mortgage offer. So the lender has total control of the situation .
  • ACG
    ACG Posts: 23,677
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    fair point.

    Presuming they meet the criteria though, i dont think it would get past TCF if they declined a port down to profit margins. Id put a complaint in if thats the only reason anyway.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • olly300
    olly300 Posts: 14,736
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    Thrugelmir wrote: »
    The criteria is set at the discretion of the lender. To that I would add there's no right to a new mortgage offer. So the lender has total control of the situation .

    The lender is regulated so they have to treat customers fairly.

    They need to explain their reasoning for refusing the mortgage and the reason must be fair.

    It's likely with Santander their surveyor has down valued the property. If it is then you have to provide evidence to prove that the property is worth more.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • I would say its nothing to do with the rate. Never heard of cases being declined for this reason.

    Their case notes are pretty clear as to why they are not proceeding with a deal. Best you get to the bottom of this part before starting on the conspiracy theory.

    If happy to lend to you as a client, they would have said something like 'we can do the loan of £X but in needs to be on our product Y as we cannot top up deals with existing lifetime trackers'.

    Good luck
  • lauren565
    lauren565 Posts: 69 Forumite
    edited 26 February 2013 at 9:54PM
    Thanks for everyones responses. Decided to stay put, they will have to prise this mortgage deal from my jaws!!!! Going to carry on overpaying and just then enjoy an easier life. Im only 32 so it will be worth it in the end. I think we just sold too low and was seeking to buy to high, the figures would not stack up. I have been offered a different deal from another lender but its over 30 years (would be in my 60s by then !!!) and the interest rate is rubbish so I am going to stick with what Ive got and it can be gone in 2 years or so. Thanks all x

    Santander can kiss my A***
  • kingstreet
    kingstreet Posts: 38,690
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    Savings rates are higher than the rate of the mortgage?

    Why overpay? Why not save the money until such times as the mortgage rate goes lower than the savings rate, if ever?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • michaels
    michaels Posts: 27,949
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    Umm - if you are paying 0.99% you are better off paying as little capital as you can and saving the overpayments somewhere paying a higher rate.
    I think....
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    ACG wrote: »
    Presuming they meet the criteria though, i dont think it would get past TCF if they declined a port down to profit margins. Id put a complaint in if thats the only reason anyway.

    Further to my previous posts.

    The FSA will not intervene where decisions are made on justifiable commercial grounds. In this regard both Skipton Building Society and Norwich & Peterborough BS broke contractual arrangements to raise their lending rates. An attempt was made to challenge the Skipton in the High Court but insufficient borrowers were willing to stump up the cash to fund a test case. In both instances the lenders relied on the Exceptional Circumstances clauses which are standard terms in mortgage contracts.
  • Wh05apk
    Wh05apk Posts: 2,938
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    Thrugelmir wrote: »
    Further to my previous posts.

    The FSA will not intervene where decisions are made on justifiable commercial grounds. In this regard both Skipton Building Society and Norwich & Peterborough BS broke contractual arrangements to raise their lending rates. An attempt was made to challenge the Skipton in the High Court but insufficient borrowers were willing to stump up the cash to fund a test case. In both instances the lenders relied on the Exceptional Circumstances clauses which are standard terms in mortgage contracts.

    Different situation, they were "svr's" OP is in a lifetime tracker @ br+0.49% that margin is contractual and cannot be changed.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I can assure you that given Santander's current wholesale funding costs they are losing a small fortune on this mortgage - and that is before any allocation against their own internal costs.

    As a former corporate credit officer myself, we were trained with the mantra "no credit margin ever makes a bad deal good" however equally no margin at all would render a good deal very bad indeed!
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