woolwich won't port my mortgage current account reserve

orsonvcarryl

Hi All,

I'm a first-time poster so my apologies if this question has been asked already.

I am porting my current mortgage with Woolwich. I have absolutely no debts and am not asking to borrow any additional funds. I used 7k from my 12k mortgage reserve to pay fees etc and to ready my house for sale.

I have been informed by Woolwich that they wish to take away this facility even though it is part of the t&c of my current mortgage.

Surely, they have to port my mortgage in it's entirety if I meet their lending criteria - which I do.

The 7k has now been paid back.

Any advice as to my position in insisting that I am allowed to keep this facility would be greatly appreciated

_Andy_

They dont have to port anything.

kingstreet

As we've seen with reduced credit card limits and "nil balance" accounts closed, a lender can withdraw a line of credit at any time, provided it gives notice of its intention to do so.

I don't think you'll be able to do anything to stop it.

orsonvcarryl

they haven't given advanced notice. they told me when I asked to port the mortgage. Does this make a difference? @ Andy, thanks for your curt and unhelpful response...

Thrugelmir

orsonvcarryl wrote: »

I have been informed by Woolwich that they wish to take away this facility even though it is part of the t&c of my current mortgage.

When you port the mortgage. Then it will subject to new terms and conditions, and a new mortgage contract will be entered into. The Woolwich are under no obligation to maintain the reserve facility.

moneysaymoneydo

Woolwich can set out new t&c's im afraid and andy you have a way with words i agree extremely unhelpful!

kingstreet

orsonvcarryl wrote: »

they haven't given advanced notice. they told me when I asked to port the mortgage. Does this make a difference?

If you had done nothing to enquire about porting your mortgage and you out of the blue received a letter telling you your reserve was being withdrawn, then notice would be required.

As has been pointed out by others, you are porting the rate from your previous mortgage to a new one and the terms and conditions which will apply to you will be the new ones, I'm afraid.

orsonvcarryl

At the moment I have one offer (considerably reduced from what I applied for) and this facility is being offered. My current mortgage has no missed payments- ever- yet they wish to take it away when I port and not give me a reason for doing so. Surely, this is not right?

opinions4u

orsonvcarryl wrote: »

Andy, thanks for your curt and unhelpful response...

Curt, I agree. Unhelpful? It tells you very clearly that no lender is obliged to accept you for a mortgage, even one that you have a portable product with.

In what way is that unhelpful? Is it clear, factual and to the point? Sure is.

My current mortgage has no missed payments- ever- yet they wish to take it away when I port and not give me a reason for doing so. Surely, this is not right?

It may have come to your attention that the mortgage market has changed dramatically in the last 3 years and lenders have less money to lend.

Some companies have ceased new lending altogether. Their customers who have portable mortgages cannot move ANY of their mortgage to a new property with the same lender.

Other lenders who sold 95% portable mortgages now restrict loans on new properties to 75% or less - so those with portable mortgages and little equity are unable to port. Without savings they are unable to move.

Your lender has pulled the plug on flexible loan facilities. While it may not seem fair and it may have upset you, it's a lot better than being in the positions oulined in the two paragraphs I've just posted above.

If your existing mortgage is £100k and your existing flexible facility is £12k they can choose to lend you £50k with no flexible facility or £150k with a flexible facility. Or any other amount that they choose, including nil. In no way do they have to honour your existing debt. And unless the portability clauses in your previous deal guaranteed to port the flexible part of the mortgage there is nothing you can do about it.

While you have the lender's complaints procedures to follow, I suspect the FOS would be unsuccessful as they cannot compel a lender to change their underwriting criteria. You could, potentially, take the lender to court if you feel that they have breached their contactual agreement. But you would lose and there's a reasonable chance that a court would award costs against you.

You need to accept this for what it is. If you don't like it, take your business elsewhere.

_Andy_

orsonvcarryl wrote: »

they haven't given advanced notice. they told me when I asked to port the mortgage. Does this make a difference? @ Andy, thanks for your curt and unhelpful response...

Why is it unhelpful? It's the truth. I wasn't being rude just stating the fact. Would you rather I dressed it up in several paragraphs of !!!-kissing?

Muppet.

orsonvcarryl

@ Andy. I really don't have time to waste on you so don't bother posting a reply to this. It's easy to be an !!!!!! in cyberspace - anyone can do it. You certainly wouldn't do it to my face...you perfectly formed turd!

@ opinions4u thanks for your post.

You state:

'If your existing mortgage is £100k and your existing flexible facility is £12k they can choose to lend you £50k with no flexible facility or £150k with a flexible facility'

Well, my existing mortgage is 113k and my flexible facility is 88k over the lifetime of the mortgage. I applied to borrow 154k with my wife - who also has a clean credit record - thereby, topping up my current mortgage by 40k.

They won't give me the 154K - like I said they have reduced the figure by 30k. They have made it a condition that all my wife's credit cards are paid off - even though they have never been in dispute. And they are refusing to port my current mortgage in it's entirity. The LTV we are requesting is less the 60%.