IF.com - Offset - No longer transportable....

hdpete_2

Hi all,

I have an early Offset Tracker (BoE +0.74%) with no lower collar which is working very well for me at the moment. Just as I'm about to take the plunge and move up in the property market, IF write to tell me that my mortgage is no longer portable and I can't borrow any additional lending.

Can they even do this? I haven't trawled through the T&C's yet, but surely they're obliged to uphold their side of the bargain.

For now, it seems that we may as well stay put; overpay to maximise the benefits of a very low rate and extend our current property, or am I missing something? I would struggle to persuade myself that I should remortgage elsewhere and pay a considerable uplift on the current rate just for the same amount of cash.

Any advice or observations gratefully received.

Regards
Pete

opinions4u

HDPete wrote: »

I have an early Offset Tracker (BoE +0.74%) with no lower collar which is working very well for me at the moment. Just as I'm about to take the plunge and move up in the property market, IF write to tell me that my mortgage is no longer portable and I can't borrow any additional lending.

Can they even do this? I haven't trawled through the T&C's yet, but surely they're obliged to uphold their side of the bargain.

Their side of the bargain is to allow you to port if you meet their lending criteria.

If they no longer lend you can no longer meet their criteria so you can't port.

Not great news, but legal.

As I understand things, as long as you apply before April 2010 you can still port your mortgage. So you need to decide if you want to chase the deadline.

Linky states "What happens if I am planning to move home, can I take my Intelligent Finance mortgage with me?
Yes. You can take your Intelligent Finance mortgage with you if you apply before 8pm on the 1st April 2010 provided your loan amount is less or stays the same."

For now, it seems that we may as well stay put; overpay to maximise the benefits of a very low rate and extend our current property, or am I missing something? I would struggle to persuade myself that I should remortgage elsewhere and pay a considerable uplift on the current rate just for the same amount of cash.

You should keep that rate until it becomes uncompetitive.

dimbo61

If you are on a very good deal then consider extending by saving up the money or borrow off another company rather than lose you current good deal.
Dont overpay when you can get a better rate from savings and build up the money to pay for work.