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  • FIRST POST
    lauren565
    Santander trying to block me porting 0.99% deal
    • #1
    • 26th Feb 13, 4:47 PM
    Santander trying to block me porting 0.99% deal 26th Feb 13 at 4:47 PM
    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
Page 1
    • koexelek
    • By koexelek 26th Feb 13, 4:53 PM
    • 7,362 Posts
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    koexelek
    • #2
    • 26th Feb 13, 4:53 PM
    • #2
    • 26th Feb 13, 4:53 PM
    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
    • By olly300 26th Feb 13, 4:56 PM
    • 14,315 Posts
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    olly300
    • #3
    • 26th Feb 13, 4:56 PM
    • #3
    • 26th Feb 13, 4:56 PM
    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

    (If a link I give opens pop ups I won't know I don't use windows)
    • Wh05apk
    • By Wh05apk 26th Feb 13, 5:25 PM
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    Wh05apk
    • #4
    • 26th Feb 13, 5:25 PM
    • #4
    • 26th Feb 13, 5:25 PM
    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
    • By Thrugelmir 26th Feb 13, 5:31 PM
    • 47,780 Posts
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    Thrugelmir
    • #5
    • 26th Feb 13, 5:31 PM
    • #5
    • 26th Feb 13, 5:31 PM
    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.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
    • ACG
    • By ACG 26th Feb 13, 5:42 PM
    • 12,675 Posts
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    ACG
    • #6
    • 26th Feb 13, 5:42 PM
    • #6
    • 26th Feb 13, 5:42 PM
    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
    • By Thrugelmir 26th Feb 13, 5:55 PM
    • 47,780 Posts
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    Thrugelmir
    • #7
    • 26th Feb 13, 5:55 PM
    • #7
    • 26th Feb 13, 5:55 PM
    I doubt very much it will be to do with the rate,
    Originally posted by ACG
    Santander are losing money at this rate level. FSA levies alone are costing them around .25% on mortgage debt.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
    • ACG
    • By ACG 26th Feb 13, 6:08 PM
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    ACG
    • #8
    • 26th Feb 13, 6:08 PM
    • #8
    • 26th Feb 13, 6:08 PM
    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
    • #9
    • 26th Feb 13, 6:09 PM
    • #9
    • 26th Feb 13, 6:09 PM
    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
    • By Thrugelmir 26th Feb 13, 6:32 PM
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    Thrugelmir
    Thats not the customers fault though.
    Originally posted by ACG
    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.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
    • ACG
    • By ACG 26th Feb 13, 7:06 PM
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    ACG
    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.
    • Thrugelmir
    • By Thrugelmir 26th Feb 13, 7:13 PM
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    Thrugelmir
    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?
    Originally posted by ACG
    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 .
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
    • ACG
    • By ACG 26th Feb 13, 7:21 PM
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    ACG
    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
    • By olly300 26th Feb 13, 8:19 PM
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    olly300
    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 .
    Originally posted by Thrugelmir
    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

    (If a link I give opens pop ups I won't know I don't use windows)
  • Crashandburn
    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
    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***
    Last edited by lauren565; 26-02-2013 at 9:54 PM. Reason: added
    • kingstreet
    • By kingstreet 26th Feb 13, 10:47 PM
    • 29,042 Posts
    • 15,399 Thanks
    kingstreet
    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-on-one-advice, or representation.
    • michaels
    • By michaels 26th Feb 13, 10:50 PM
    • 17,247 Posts
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    michaels
    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.
    Sent from my ...electronic gadget which I am sad enough to think gives me status even though in fact it just shows that I am easily ripped off and a bit inadequate...
    • Thrugelmir
    • By Thrugelmir 26th Feb 13, 11:17 PM
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    Thrugelmir
    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.
    Originally posted by ACG
    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.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
    • Wh05apk
    • By Wh05apk 27th Feb 13, 9:10 AM
    • 2,912 Posts
    • 1,320 Thanks
    Wh05apk
    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.
    Originally posted by Thrugelmir
    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.
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