POrting an RBS Mortgage

niallmitch

Any views on this?

Moving from South West of England to Chepstow as cost and time of travelling to work in Bristol is killing us (2 hours each way, £500 per month)

Have a fixed rate 5 years mortgage with RBS (5.09%) which is 1 year in - as the penalty for ending early is 1% per year, was looking to port mortgage rather than renew.

Have sold our house stc for £153,500 and bought one stc for £118,500 - mortgage will reduce from £120k to £90k.

Having properly planned the budget, our outgoings will reduce by a net £1,249 pcm. I was expecting this to be about £500 but taking into account needing only one car, lower mortgage costs etc - this is even without taking into account imponderables such as fewer take aways because of no longer getting home late at night.

Seems a no brainer to me that there shouldnt be any problems with this.

However, wife was off work all summer and reduced income has meant a couple of defaults so bank have come back in first instance and said no because of adverse credit. Mortage adviser is now "appealing" this putting details in re full breakdown of budget, reducing equity etc.

1. What are the chances of this working?

2. If not, how difficult will it be to obtain mortage elsewhere?

Have looked on the money supermarket, ticked the adverse credit box and was shown lots of options, mostly Post Office mortgages.

My "adverse" is likely to be 2 defaults (one on a now fully paid off loan) and a credit card, with a couple of exceeded overdraft limit in last four months.

Kicking myself we didnt do this a year ago given the savings on offer and improvement in life style but do question why the RBS need to be so obstinate.

Any views or advice appreciated.

thanks

BeauBelle

When we asked about porting our current mortgage we were told that we couldn't reduce the balance by more than our yearly overpayment amount without having to pay the redemption. Have your mortgage company agreed to reduce the current mortgage so much while you are still in the fixed rate?

niallmitch

Can pay 10% without penalty - down to 108k, the 4% of 14k will need to be paid as penalty = £ 560

_Andy_

Refusing a mortgage due to adverse credit is hardly being 'obstinate' - more like sensible lending.

niallmitch

Thanks for your constructive comment Andy - as it turns out, I've now checked my credit record on Equifax and it shows one default - for £46 for Vodaphone for an account I closed 18 months ago and paid off in fully when i closed it - i have disputed with equifax but no doubt that will take a time to sort.

the loan is shown as settled with no lates so it wasnt that

I've never been a day late in 7 years paying RBS my current mortgage, am reducing amount borrowed and am looking to borrow less than 2 1/2 times my salary - more like joe public being messed about by a bank that screwed up imho