Woolwich policy change effecting mortgage offer

Borrower

I'm currently buying a new property, and went to the Woolwich for the mortgage as I already have a mortgage with them on my existing flat. I'm keeping that flat and letting it out when I move, so I was told I'd need get PTL (permission to let) for the existing flat. I was also assured I could port the rate from my existing mortgage to my new property, which was great news as I have a base +0.29% tracker. (existing flat would go on a new product, probably interest only to keep repayements low as possible, to ensure covered by rent)

When the first mortgage offer came through in January is contained an error, which specified that the existing mortgage needed to be paid off to get the rate port. The mortgage advisor at the Woolwich accepted that this was in error, so we waited whilst this was corrected. A month went by before they supplied the ammended offer, but unfortunately the clause, although reworded, still required the repayment of the existing mortage.
When I raised this again I was informed that during the month I waited for the correction a policy was introduced which invalidated the rate switch on PTL properties. I'm told this is unfortunate, and there is nothing that can be done, and I'll have to take out a new product.. currently about 2.99% for new trackers, thats 2.7% higher than I'd been expecting.

Now obviously I'm furious about this. Had their error not been in the first offer then everything would have gone ahead fine, however in the time it took them to correct the error they introduced a policy change which meant it could never be honoured, and now I'm looking at a much higer rate.
It's taken so long that everything else is in place and I was hoping to move in 4-5 weeks. If I accept the new rate that can still happen, but I feel pressured into doing this as I risk losing the sale, when all I want is my rate to be ported.
I have a good case right?

Joyful

Why don't you remortgage your rental flat with another provider and then port your mortgage on your new property?. I know how you feel though. I had approached them for a loan on the Friday to do work on my Roof and was advised no problem. When I called to put it through on the Monday their terms had changed that very day and I could not get the loan through them at all as they had moved the goalposts. The advisor I spoke to said now people had to have much more left over after paying bills and he thought they would not be able to give out any loans at all.

chivers1977

PTL is only given when you are expecting to move back into the property.

This should be a BTL application for your existing property and a normal residential application for the purchase.

I suggest you contact your adviser again to query the application. Do you fit affordability to have two mortgages. One of the mortgages when you have two is normally on SVR, but sounds like something different is being offered....