HELP been let down by mortgage company

arnett

today we phoned are bank in order to move our mortgage from the property we are selling to the one we wish to buy. they had agreed everything and done credit searches less than two weeks ago. they said we could borrow up to £60 000. now we have signed the contracts to sell our home and move out in four weeks and the bank today refused the new mortgage.

we have sold our house for £124 000 we owed £54 000. we have been overpaying our mortgage for a while and have saved £6 000 in total in a pot in the bank. today on the phone we told them that we would use that money in order to borrow the same amount on the new house.

The house we wish to buy have accepted an offer of £130 000 (it is in a far better area than our house and is worth far more than this figure with a little work) the bank will not let us move our mortage over and still owe £54 000.

they said we cannot afford to pay back the mortgage, even though we have been overpaying approx £200 per month.

My husband has been working part time and we have been claiming tax credits whilst I study(we have 5 children). we explained our financial situation several times over the last year and have always got the go ahead for swapping the mortgage to a new property.

is there anything we can do?? we can clearly afford the mortgage we already have. they will let us keep it for our present home, but we do not wish to let our buyers down and break the chain (it has taken nearly three years to sell the property)

GMS

Mortgages which are portable are often believed to be easy to move.

The reality is that porting allows the mortgage to be moved subject to meeting the lenders criteria at that time. Unfortunately for you it sounds like you do not fit this.

Despite the fact that you have maintained the mortgage, and been overpaying the fact is as a new customer they would not lend to you which means you cannot port the mortgage.

Without knowing your precise circumstances it is difficult to know wht you could do.

Speaking to a 'Whole of Market' broker may be a good start.

herbiesjp

This does sound like an unfortunate position.

Are you dealing direct with the lender or going via a broker already?

It may be a broker could help position your case better with the lender, and if that fails, you will have to find a different lender in order to proceed with the purchase.

If you want to proceed, you had better get in contact with a good broker, and explain the situation in full (although affordability would appear to be the problem now).

Thrugelmir

arnett wrote: »

today we phoned are bank in order to move our mortgage from the property we are selling to the one we wish to buy. they had agreed everything and done credit searches less than two weeks ago. they said we could borrow up to £60 000. now we have signed the contracts to sell our home and move out in four weeks and the bank today refused the new mortgage.

Have you made a formal mortgage application or merely enquired and received an AIP (Agreement in Principle) ?

You've signed a contract to sell your home and move out in 4 weeks. Where are you planning on living? Do you have rental accomadation in place?

Many people have been in the fortunate postion of overpaying their mortgages due to the low current rates. Lenders however will base affordability on more normal rates of interest. Anything between 5% - 7%. As low mortgage rates will not be around for ever.