Santander trying to block me porting 0.99% deal

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lauren565
lauren565 Posts: 69 Forumite
in Mortgages & endowments
Hi, I hope someone has advice. I finally sold after 18 months on the market, and found somewhere to buy. It would mean borrowing more but we make huge overpayments anyway. I currently have a flexible mortgage 0.49% above the base rate, so its currently 0.99% (for the life of the mortgage) enabling us to make those massive overpayments. Anyway, the mortgage was agreed in principal with santander based on all our incomes, etc. But now they have declined my application - I am totally stunned. I asked if overpaying would have deemed me lower risk, got me better "credit" with santander but they said nope. I dont know what to do. The buyer is not likley to increase her offer. I think they are being difficult because they are trying to get me off this deal and independent financial advisors have said this to me also. Do you think I should just stay here then and keep this deal. I really wanted to move and was promised it was portable, but now they are moaning about figures. Thanks:mad:
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  • koexelek
    koexelek Posts: 7,847 Forumite
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    Loans are only ever portable subject to being completely underwritten again, taking into account the lenders current lending policy.
    Call me cynical, but if a borrower is on a cracking deal ( which you are) a lender will often see you moving as an opportunity to get you off of that and on to something more expensive.
    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 Forumite
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    Sorry - search Santander on this board - they are trying to get rid of lots of people.

    Though in my case they now want to keep me but I'm moving my mortgage somewhere else.

    Surely a financial adviser can suggest something to you.
    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)
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
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    This will be !!!!!! all to do with the rate, the underwriters do not look at it and decide "not profitable - decline" the rate is irrelevant, somewhere you simply do not fit their criteria, speak to your broker/Abbey salesperson and ask them to explain the decline reason, they should be able to give you some justification.
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    When they set the rate. No one envisaged a 0.5% base rate for 4 years. So you can hardly complain. As have benefited enormously.

    So your choice. Stay put and make the most of a once in a lifetime opportunity to repay your mortgage quickly. Or move and pay for the priviledge.
  • ACG
    ACG Posts: 23,727 Forumite
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    You need to find out the reason. I doubt very much it will be to do with the rate, your either entitled to it or not - if your not, it will be down to lending criteria and not the rate.
    Until you find out the exact reason were all just taking a stab in the dark. Ask them the reason and then come back to us.
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    ACG wrote: »
    I doubt very much it will be to do with the rate,

    Santander are losing money at this rate level. FSA levies alone are costing them around .25% on mortgage debt.
  • ACG
    ACG Posts: 23,727 Forumite
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    Thats not the customers fault though. That practice would never get through TCF.

    I cant imagine her contract saying you can port your mortgage subject to meeting underwriting criteria....unless were losing money on your deal, in which case you cant port it.

    This is why she needs to find out the reason, presuming she does meet the criteria they dont have a leg to stand on, they will have to honour the deal.
    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.
  • mrsmchapman
    mrsmchapman Posts: 358 Forumite
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    We are currently porting our mortgage to a new property, we keep the current rate until the fixed runs out but the extra borrowing is on a new rate.

    The choice is yours as to whether you move or not, but I can't see them giving you a potentially higher mortgage on this rate, it's just not worth it for the mortgage company.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    ACG wrote: »
    Thats not the customers fault though.

    Agreed. However Santander are honouring the existing contract. There's no commercial logic in allowing a port. Given Santanders overall financial position. Which is off track to this discussion. However very much an issue for the bank.
  • ACG
    ACG Posts: 23,727 Forumite
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    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?

    Obviously on creation of the new contract/property - they could remove the ability to port in future as that would form part of any new contract. But the OP is exercising their right under the current contract?

    Otherwise its changing the goalposts which without the clients agreement i would imagine it cant be done?

    All of this could be a pointless discussion if the OP has a default 3 months ago or the property is a houseboat for example. The OP needs to find out their rationale before we can make a proper answer.
    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.
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