Abbey decline to port my portgage

Davys_3

Hi folks,
First post, but I've been encouraged by the assitance and advice given to others over the last few months that I thought I'd finally join and seek some invaluable advice.

I've been with the Abbey for 2 years and I have 3 years left on my 5 year fixed rate deal. Currently the mortgage and my house are solely in my name. My partner moved in 2 years ago and we recently decided to purchase a new build. On going to see the Abbey about porting my existing deal and adding my partners name to the mortgage, we were initially told that it would be no problem - joint incomes were fine.

However when it came to the credit check I was declined due to a defauilt registered on my file from January 08. I had taken out a joint loan with my ex partner before we broke up - I forwarded her half the money each month and the total amount came out from her account, but unknown to me she stopped paying the loan 6 months previously while I kept sending the money. I cleared the total amount outstanding myself as soon as I found out about the default, but found out too late to stop it appearing on my file. Rest of file is squeeky clean and I have never ever had a late payment on my mortgage. On enquiring Abbey advised that appealling their decision would probably fail.

Anyhow, we now have a new mortgage agreed with the RBS which out of necessity is solely in my partners name. When the time comes to move in August we will have to pay around 4k to the Abbey to get out of my 5 year deal. I'll be grateful if anyone can advise if I have any chance of trying to reduce this amount, or do I have to do what many others before me have had to do and bit the bullet while taking one up the jackssy from Abbey?

Thanks in advance for any help received.

_Andy_

No there isn't any chance of reducing the ERCs.

happybroker

will the Abbey allow you to put the existing mortgage into your joint names and then port it in his name only? Just a thought, not had chance to research it myself as pretty busy but could be worth asking I suppose.

unlimited5

I have an existing Abbey Mortgage and I have just applied to port it over to a new property having sold my existing one. Abbey have declined my porting application due to adverse information on my credit file however this information was there when they accepted the original mortgage??? if anything it has got alot better. I will now have to pay and early repayment charge and I dont think this is fair as I would rather stay with Abbey.. Has anyone got any advice??

TBeckett100

Abbey also found adverse when I applied to port the mortgage which was there when I applied. Since then it has dropped off. they also asked for payslips.......................:-(

unlimited5

I feel like I am being shafted by Abbey because they have me over a barrel, I now have no choice but to look for a mortgage elsewhere, they stand to make a fortune out of me in the early repayment charge. I think this is incredibly unfair!!

TMSL

Abbey do have the right to re-underwrite a porting application based on their new credit scoring model and underwriting policy. If you check your original kfi this will be stated. I ported a mortgage for a client last month , which was initially declined but accepted on appeal. They are a terrible lender to deal with at the moment. It seems wrong that they accepted you the first time around and you have never missed a mortgage and now they wont let you port, as I assume you are no more of a risk as the ltv will be the same if not better. There doesnt seem to be a lot of common sense with lenders at the moment, just a tick box underwriting approach.

unlimited5

I realise that there is a risk but I have an excellent repayment record on my mortgages going back 20 yrs. I have never missed a payment or been late. I got divorced 5 years ago and accrued some defaults on my file but they were there at the time of the original mortgage (they accepted them then in april this year) and my file has improved significantly since the original application. I think its obviously more profitable for them to force the early repayment charges than risk a mortgage.

Thrugelmir

unlimited5 wrote: »

I feel like I am being shafted by Abbey because they have me over a barrel, I now have no choice but to look for a mortgage elsewhere, they stand to make a fortune out of me in the early repayment charge. I think this is incredibly unfair!!

You choose the product at the outset. You were aware of the terms of the product.

The NW will have secured funds for you to borrow at the fixed rate. They are liable to pay interest to the saver for the rest of the term. Hence the ERC.

If you want flexibility stick to SVR mortgages or lifetime trackers.

Thrugelmir

TMSL wrote: »

Abbey do have the right to re-underwrite a porting application based on their new credit scoring model and underwriting policy. If you check your original kfi this will be stated. I ported a mortgage for a client last month , which was initially declined but accepted on appeal. They are a terrible lender to deal with at the moment. It seems wrong that they accepted you the first time around and you have never missed a mortgage and now they wont let you port, as I assume you are no more of a risk as the ltv will be the same if not better. There doesnt seem to be a lot of common sense with lenders at the moment, just a tick box underwriting approach.

Banks can choose who they lend too now. Times have changed.

unlimited5

Thrugelmir wrote: »

You choose the product at the outset. You were aware of the terms of the product.

The NW will have secured funds for you to borrow at the fixed rate. They are liable to pay interest to the saver for the rest of the term. Hence the ERC.

If you want flexibility stick to SVR mortgages or lifetime trackers.

I agree I did choose the product and I have also chosen to stay with them!!! I dont wish to repay I want to take it with me and increase it to cover the cost of the new house. My credit has improved so I dont see how Abbey are not prepared to accommodate me. My earnings are more than sufficient and my credit history was fine when they agreed to take me on. It seems to me that it is more profitable for them to say no than take me on with the new property...

I dont want flexability or an SVR mortgage!