Homeowners Trapped - You should read this!

PompeyPete

In today's Money Mail...

http://www.thisismoney.co.uk/money/saving/article-2009165/Homeowners-trapped-banks-start-tough-loans.html

...and very scary.

I think this is how we've just been shafted.
Our buyer suddenly, and mysteriously dropped out when all they wanted to do was port their mortgage from their current property onto ours.
The above article seems to explain all.

I think our buyer was offered a mortgage subject to survey, and subject to providing their lender other information.
The survey happened very quickly, but I reckon that our buyers' for whatever reasons refused to provide the information required by their lender (C&G), and in the end they both pis.ed each other off!

If this turns out to be the norm then it'll only be cash buyers and first time term buyers who'll be in a position to buy our pad!!

pararct

The credit feast of the last decade or so is well and truly over. Ireland and Greece are just two examples of how the banks have over exposed themselves all over the world issuing mortgages against property where its actual value bore little resemblance to the sum which they loaned upon it.
Credit lines are being tightened all over the world, liquidity in UK banks is again starting to become a problem due to uncertainty over Greece.

In all honesty all the banks have been much more careful who they have loaned to and the sums involved since a number of them nearly fell over in 2008. There will still be mortgages available but only to those that have a good deposit and the correct earnings ratio to loan to pay it back!

Richard_Webster

I think it is fair to say that a lot of people didn't read the terms and conditions of the "portabality" of their mortgages and assumed there wouldn't be a problem.

tyllwyd

But when you read the article you can see that they 'had recently set up a new business'. So maybe they would not have had proof of income to be able to port their mortgage even pre-credit crunch.

sooz

Not only that, but the last business had 'failed'.

If they only had 6 months to go on their mortgage, could they not have waited, rather than pay the early redemption charge?

sooz

PompeyPete wrote: »

I think this is how we've just been shafted.
Our buyer suddenly, and mysteriously dropped out when all they wanted to do was port their mortgage from their current property onto ours.
The above article seems to explain all.

You don't port the mortgage itself. You port the mortgage product.
You still have to apply for a mortgage and meet the current criteria, you just get to keep the exisiting rate & package.

kingstreet

I reckon we get three or four porting cases a day on the M&E board where borrowers think portability means a guaranteed mortgage or the ability to transfer a mortgage when they move.

Essentially, you have to take out a whole new mortgage when you move house. A mortgage isn't transferable from one property to another. If you qualify for a new mortgage with your existing lender, you may be able to continue (or port) the rate from your old mortgage to your new one.

Regardless of the credit crunch, if you didn't satisfy the lender's criteria for some reason, you didn't get a new mortgage. A simple question. If you're in arrears with Halifax, would you expect them to give you a new mortgage so you could move house? No? Spot on. Same with drops in income, different loan to value, altered employment status and so on...

In the bulk of cases mentioned in that story, the borrowers would struggle to get a mortgage with any lender, not just their own. The lending criteria could be the same as it was on the day they applied for their current mortgage, but a change in their circumstances means they would be unsuccessful then as they are now.

Portability is one of the issues I've been covering with borrowers as long as I can remember, but I'm not sure lenders spend as much time explaining it to borrowers as perhaps they should. They may have unrealistic expectations because of a lack of proper explanation.

Procrastinator333

sooz wrote: »

Not only that, but the last business had 'failed'.

If they only had 6 months to go on their mortgage, could they not have waited, rather than pay the early redemption charge?

Exactly, more going on here than is being said. Sounds like the bank got it spot on. As a taxpayer and therefore owner, I'm very glad NR didn't lend them any more cash and took the £15k off them. Whoever sorted that out at NR earnt their wages that week. :beer:

casper_g

PompeyPete wrote: »

...I reckon that our buyers' for whatever reasons refused to provide the information required by their lender...

What, they couldn't get a mortgage even after they refused to give the lender the information required as part of the application process? That's outrageous! The banks are clearly being unreasonable.

Homersimpson

Sounds like a little bit of common sense from the banks a bit late but its a start!

hcb42

typical Daily Fail reporting.