C&G not allowing us to port on like for like basis rant

kings981

I think that perhaps situations with banks change fast and you could keep asking.

Two months ago we went to C&G with our existing mortgage lender to borrow more to buy a new house - they said no problem.

We found a house and a buyer for ours, went to them yesterday at 9.05am to sort the paperwork, they said they weren;t lending anymore and I would have to go to LLoyds TSB. Slight panic! Ten minutes later I was rung back and told that now they are lending and I could make an appointment with the mortgage advisor. I also think it depends who you speak to - I have had conflicting advise from the call centres and the instore mortgage advisor.

garvbuck

I just found this on the UK Insolvency helpline, for people wishing to move who are in negative equity:

Help from your lender

• Contact your lender and ask if there are any schemes they run to help with negative equity. Some lenders may have packages for their existing borrowers but usually only if you have a good payment record. For example, you may be allowed to borrow up to 125% of the value of your new home when you move. There may be a maximum amount of debt on your old mortgage that can be included in your new mortgage.
  Also, you may have to pay off the old mortgage debt over a shorter time period than a usual mortgage, such as 10 years rather than 25 years.

This is not necessarily a cheap option as the interest rate may be higher and there may be a fee. You are also putting your new home at risk if you cannot keep up the total mortgage payments on the new home. Payments will be larger than normal because of the shortfall having been included.
Remember, you will need to pay solicitors, estate agent fees and the costs of moving as well.

• Some lenders may agree to accept less than the full amount of the shortfall debt by securing part of the debt on a new property as part of your mortgage and writing off the rest.
• Some schemes ask for a guarantor on the new loan (such as a relative) and may want the loan secured on their home as well as your own. Be very careful, the guarantor’s house would be at risk if you can’t make the payments.
• You may be able to clear the negative equity by obtaining an unsecured loan from your bank or building society. This will probably be more expensive than a secured loan because a higher rate of interest is usually charged, but an unsecured loan does not put your new house at risk. The loan may also be over a shorter period which would mean the monthly payments are likely to be larger.
• A limited number of lenders may run schemes that offer assistance to all borrowers. So you can apply even if your mortgage is with a different lender. Shop around high street banks and building societies and ask about these schemes.

So, while C&G don't seem to be one of these lenders at the moment, it's always worth keeping an eye on the situation as it might change.

Dan_1976

This is why Mr Brown should not make 100% plus lending against the law/rules!

Jamsterthehamster

in my experience c&g are Not the most 'helpfull' of lenders.
two requests for an illusration of costs on mortgage, two apologies for the delay....6 weeks of waiting? - Hmmm?