Porting LTV rates

lemmy-1

Hi

Having cleared with my bank to port my mortgage across with its current 95% ltv providing we do not go above the original amount borrowed, I have now made an offer on a house. My property was completed so I have 6 months in which to port my mortgage.

When I contacted the mortgage company they said that we now need an 85% deposit, despite our original mortgage being 95% and our borrowing amount being less than it originally was. We have not defaulted at all and the only reason they gave is that their products have changed.... Can they do this?

Emmzi

yes unless you have an unusual agreement. usually only rates port. what does your loan documentation say?

lemmy-1

Thanks for speedy reply. Top of my head not sure about agreement. They previously agreed to keep the 95% but the property fell through. Now we found another property they are suddenly now withdrawing it so obvioulsy it isn't their policy to not do 95% on porting... Do you think it is negotiable and do you have any advice on how to tackle it?

G_M

they said that we now need an 85% deposit,

Are you sure they said this??

lemmy-1

Sorry, I meant 15% deposit, changing the mortgage to 85%ltv. we wanted to borrow about £1000 less than was on the previous morgage, wanted to keep with the 95% ltv so should have been fine. We spoke to them a couple of weeks ago before we put the offer in on this property and there didn't seem to be a problem. Then when we called to start the process over they sais we needed 15% deposit.

Its possible that the person we spoke to misunderstood our situation, so I plan to try again tomorrow to find out whats going on. I've been searching to see if anyone else has had this problem but can't find anyone that has online so don't know if its a common problem or if there is anything I can do about it.