Homeowners Trapped - You should read this!

PompeyPete

casper_g wrote: »

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.

I was guessing.

Nothing that's been said so far is of any consolation to people like us who are selling their property to someone who unbeknown to them is 'porting'.
I hadn't a clue what was 'porting' is all about, should I have? Our EA and solicitor obviously weren't aware that there could be a problem, otherwise they should have told us, shouldn't they?

If I'm being unreasonable please tell me. But if the lender (C&G in this case) to someone who wants to 'port' has approved a survey on the property they wish to 'port' to wouldn't it be better (and fairer to the seller) to make sure that any conditions being imposed on the 'porter' are fulfilled first?

In the end, our lost buyers' have exchanged on their sale, and decided to rent for a few months while they sort out a new mortgage. Everyone else in their chain have also happily moved on too.
But us, as the seller to a 'porter' are complete innocent victims, and what happened to us days after being told we should be exchanging contracts completely screwed us up.
I'm just relieved that we were the end of the chain, and not involved in screwing things up for our buyer and possibly further upwards!

Hannahkw1

I don't understand? If they only had 6 months left on their mortgage their equity must have been at nearly £500,000!! If they wanted to but a house worth only £200,000 they could have just sold, paid off the rest of the mortgage with the sale, and bought the house with a hefty amount left in the bank. Maybe the £15,000 was just what was left on the mortgage?

casper_g

PompeyPete wrote: »

Nothing that's been said so far is of any consolation to people like us who are selling their property to someone who unbeknown to them is 'porting'.

It doesn't matter that you weren't aware your buyer was porting their mortgage, because the fact they were porting the mortgage made no difference to whether or not they met the lending criteria. That's what the people in the article, and apparently your buyer, failed to understand.

Egg_custard_2

Hannahkw1 wrote: »

I don't understand? If they only had 6 months left on their mortgage their equity must have been at nearly £500,000!! If they wanted to but a house worth only £200,000 they could have just sold, paid off the rest of the mortgage with the sale, and bought the house with a hefty amount left in the bank. Maybe the £15,000 was just what was left on the mortgage?

The article says they had around £120k equity. The 6 month period will be to the end of the tie-in period, not to the end of the mortgage (if you take out a 25 year term mortgage the lender will tie you into the mortgage for a fixed period, often 3 or 5 years. If you want to change the mortgage or end it before the end of that period a charge is usually incurred for 'early redemption').

It still seems silly. The borrowers were looking to reduce their borrowing, so surely that would be better for the bank to agree to that than to risk putting the homeowners in a position where they were unable to get out of the larger mortgage?

PompeyPete

casper_g wrote: »

It doesn't matter that you weren't aware your buyer was porting their mortgage, because the fact they were porting the mortgage made no difference to whether or not they met the lending criteria. That's what the people in the article, and apparently your buyer, failed to understand.

Que?
So it doesn't matter that our sale fell through because they were 'porting'?!
As they weren't trying to borrow any more money from their lender I still can't my neck round what went wrong.
We'll be very, very careful next time, and it wouldn't surprise me that my sale will then flounder because I'm being ultra over cautious. For a kick-off I'll be demanding a full month between exchange and completion! Because until exchange I won't know whether our buyer has a guaranteed mortgage offer.
And as for anyone with an interest only mortgage who wants to 'port', then they can forget it altogether!
So far as I'm concerned the whole business is in disrepute:mad:

TrickyDicky101

Setting aside the difficulties you have experienced (and not wishing to dismiss the impact they have obviously had on you), many people do successfully port their existing mortgage product to a new property. I would suggest porting successfully is far, far more common than hitting trouble.

Those who have issues when attempting to port would have exactly the same issues were they applying for a completely new mortgage.

RobertoMoir

PompeyPete wrote: »

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!!

Do you know that the same thing happened to your buyers, or are you speculating?

I wouldn't say that the circumstances in the article are "the norm", I think there's more there than meets the eye and the daily fail aren't going to report on it properly where doing so doesn't meet their agenda.

I'm sorry that your sale got messed up for whatever reason, but as to the article, this sounds like a bank that is finally stepping up to the plate and applying stricter rules for lending... if banks had done this two or three years ago the country, if not most of the world, would be a lot better off, so its hard to be upset that they're finally doing it.

casper_g

PompeyPete wrote: »

Que?
So it doesn't matter that our sale fell through because they were 'porting'?!

The sale didn't fall through because they were porting. You don't port a mortgage from one house to another, you port a mortgage deal from one mortgage to another. Your sale fell through because your buyers didn't get offered a mortgage. As they weren't offered a mortgage, they weren't able to port their mortgage deal over to their new mortgage.

There is no reason to be wary of selling your house to people who are seeking to port their mortgage deal. They just don't have any special advantage over anyone else who needs a mortgage to be able to buy.

PompeyPete

No more from me on this subject
I hope neverdespairgirl has learned a lot from thread;)

When_is_the_reset?

Some skint people with a failed business are upset 'cos a bank that used to give out free money to anyone has changed it's mind....

I hope the world doesn't stop turning due to this bombshell.