Porting a mortgage (Alliance and Leicester)

jpatty28

Good afternoon,

I have an issue with A&L and I would appreciate your views.

Firstly, let me give my side of the story:

I am 25 years old, and own a flat I bought in 2005. I saved my backside off for it and borrowed comfortably inside what I could afford.:j

My fixed product that I had at the start of my mortgage was due to end on 30th November 2009, from a two year fixed rate. Almost exactly 4 months prior to this date, I rang A&L's mortgage service centre to discuss a new fixed rate deal. I was offered a new one and a half year deal, which I accepted and asked for the detail to be sent in the post. This arrived with no issues.

Then, I rang the service centre in October 2009, to enquire about moving home. My existing balance was approximately £149k, and I am looking to sell for roughly £165k, leaving me £16k equity. I was looking to top this up to £20k - £25k to form a deposit on a new home.

As I was coming to the end of my scheme, I was told I needed to be put through to Abbey, and as a result I was transferred over. I spoke to the Abbey consultant about borrowing up to 90% LTV with this deposit, and was told this would not be a problem. I was quoted a 5.39% fixed rate for three years (as I have a current account and savings with them) and was told I would just need to call in once I had sold and found a property I wanted to buy. I also asked for an affordability calculation which also came back positive as my girlfriend was coming onto the mortgage. On this basis, I put my property onto the market and had an offer accepted at £165k.

Today, I found a house at £210k. As a result, I rang the mortgage centre to discuss what this meant in terms of my new rate. The advisor firstly quoted that my mortgage deal was ending at the end of the month, and from the start of the new month, I would be on the 4.99% variable rate. I corrected him, and he went away to check my account. He did state at this point he was unable to see the product I was moving onto and as a result, would only be able to give me limited help.

He advised me that because I had accepted a new deal and was no longer moving onto the standard variable rate, I am unable to borrow up to 90%. In fact, he said if I was still going onto the standard variable rate, I could still take 90%, but as I had opted for the fixed product, I was limited to 85%.

As a result, I am unable to afford my new home and likely to lose my buyer, at a significant cost to me.

In addition, I have since reviewed the documentation sent to me (Key Facts Illustration, Mortgage T&C’s) and cannot find any explanation of the implications on the portability of my mortgage as a result of taking the new product.

I plan to complain to A&L, but do you think I'm in the right and will be able to turn this round? If not, I am worried the chain will collapse and I'll lose money (for legal fees etc) which is part of a small pot of money left to me by my dad when he passed in the summer.

Any help greatly appreciated (and thanks in advance)

James.