help! Advice needed porting current mortgage

chris_wood

hi, im looking to be moving in just under 3weeks, we thought everything was sorted then we had bad news that our application had been refused. We have 100k left on our mortgage and were applying for another 31k. I have since been offered the shortfall from my parents so thought i would just need to port the current mortgage over to the new house. My wife has defaults which is causing the problem but surely their should be no issue with me moving this across? Ive been told its likely that i will be refused even though the loan to value is reduced from 80-60%. We also have a boy and a girl sharing the same room which will eventually be illegal which is the reason for moving. Does anyone have any advise on who i can talk to if this doesnt work out, it just seems like these banks have no comman sense. Im even tempted to go to our mp/papers.

Thrugelmir

Maybe you need to consider an alternative lender.

beecher

I don't think having a girl and boy sharing a room is 'illegal'. Why not sell and rent while your wife sorts out her credit rating? Alternatively go to a broker for other deals.

_Andy_

Sounds like you will need to go to a broker who can find a lender happy with the adverse credit.
Feel free to go to your MP/paper, who will not be interested in the slightest - your lender does not have to approve the mortgage even though it's a porting case.

opinions4u

chris_wood wrote: »

We have 100k left on our mortgage and were applying for another 31k. I have since been offered the shortfall from my parents so thought i would just need to port the current mortgage over to the new house. My wife has defaults which is causing the problem but surely their should be no issue with me moving this across?

A portable mortgage product is not a guarantee of being offered a mortgage on the next property. It merely allows you to keep the same rate if you are accepted.

Ive been told its likely that i will be refused even though the loan to value is reduced from 80-60%.

Push them (politely) for a decision though. You need to know whether or not you need to find a new lender. Being under 60% is a major positive.

We also have a boy and a girl sharing the same room which will eventually be illegal which is the reason for moving.

Inconvenient. Occasionally embarrassing. Irritating. Not illegal though.

Does anyone have any advise on who i can talk to if this doesnt work out, it just seems like these banks have no comman sense.

Look at it from the bank's point of view. They have less money available to lend than they had a couple of year's ago. They'd rather lend what they have got to people with a clean credit history rather than somebody who has known problems meeting their commitments on time.

Im even tempted to go to our mp/papers.

The headline "bank decides to decline a customer with a poor credit history at a time of recession" doesn't really sell many copies of a paper. MPs are already looking a bit foolish for saying "banks overlending got us in to this mess" and the next sentence is along the lines of "despite the worsening outlook for unemployment, banks should be lending more".