Unbelievable mortgage port story

peterwat_2

About 8 months ago we changed our mortgage to a norwich and peterborough offset tracker as it was a good rate and we had some money to offset the mortgage.we have always overpaid (currently double) and we have over 80% of the mortgage offset.'phoned up last week to port the mortgage over(which is allowed) and were told their criteria have changed and we can't afford the repayments (WERE PAYING DOUBLE!).The LTV of the property we want buy is about 34%.if we repay or change our mortgage they are going to charge us about £1500.is it just me or is this the most cretinous thing you've ever heard.

maninthestreet

Exactly how much is the oustanding amount on your current mortgage and the amount of the new mortgage? What is your gross income?

peterwat_2

Amount outstanding on our mortgage is £48k and we don't want any extra money. Our income hasn't changed since we got the mortgage 8 months ago.

Kavanne

Yes but what IS your income!?

They can change their affordability criteria whenever they want. They aren't the only lender to have done it.

peterwat_2

surely the point is we are affording it and always have done (and more).Sorry reluctant to divulge too much personal info on a public forum. The computer says NO

Kavanne

In the current climate and the crack down on 'responsible' lending they might not be able to help you. For example if your income is 10k per annum they can't lend you 48k anymore. the multiple is too high. Also if you have other borrowing commitments that impacts your income and you may not be left with what they define as enough 'free income'.

Sorry mate. Have you tried an independent advisor?

beecher

peterwat wrote: »

surely the point is we are affording it and always have done (and more).Sorry reluctant to divulge too much personal info on a public forum. The computer says NO

I don't think that is the point, and if your income is below normal salary multiples then I don't think it is 'cretinous' at all as the criteria will have changed in the last 8 months. At the moment you're only telling half the story, but do be wary of assuming you'll get a deal elsewhere if you pay the ERC

uzubairu

With half the story and not enough facts, it's hard to have an opinion on your situation.

Why not use an IFA instead of posting on here?

maninthestreet

peterwat wrote: »

Amount outstanding on our mortgage is £48k and we don't want any extra money. Our income hasn't changed since we got the mortgage 8 months ago.

You original post stated you are buying a new property. So what is happening to your current property - are you selling it? How much is your current property worth? If you have 80% of the 48K mortgage offset, then you have about £38K savings, right?

_Andy_

peterwat wrote: »

surely the point is we are affording it and always have done (and more).Sorry reluctant to divulge too much personal info on a public forum. The computer says NO

No it isn't the point. The point is the lender's criteria - not yours.
If you're not willing to let people know income (not sure why you have an issue with that given no-one knows who you are) then there's nothing anyone here can do to help you.

getmore4less

Have you checked that you are eligable as a new borrower what does the we site say for criteria on LTV and income multiples.

Phone again and speak to someone else see what they say.

If still a problem then ask to speak to someone higher up,
do they have a branch you can go to and speak to some one in person

Or make a formal application to port the loan to the new property

Another option is to reduce the ammount you need to borrow by overpaying some more but this sounds like some ERC will be payable.

Internet forums are anonomous so details are not a problem(unless daft enought to use your real name on them) and for most question the more info the better the answers.