Unable to transfer my mortgage

tossviscount

Hi
I have a mortgage with Nationwide and i'm looking to purchase a new property as i now work too far away to make commuting viable. I have contacted my lender who originally said that it would be easy to transfer the product as i was downsizing slightly and would require no extra funding.

I have now been told that due to a credit card balance transfer that i made to a card i have with them and the fact that my account has been overdrawn by a small amount (few hundred pounds) that i cant now do this and the only way to secure another mortgage is to terminate this one and reapply as my initial request has been refused. There is a hefty penalty to go elsewhere (which i do not want to do). I have always kept up my mortgage payments. I am feeling as if i'm being held to ransom by them and the only way to proceed is to pay the fee around 4.5K and reapply. I understand they have the right to refuse my request...but i'm already paying my mortgage promptly and have a good credit rating. this is becoming a real problem

Can anyone help me with what i should do next

many thanks for your time

holly_hobby

The only option is to bite the bullet and pay them - as they have refused your request of porting you mortgage.

If you suceed with your new app with NW and complete in a short time frame from your redemption of your first mge, they may offer you a full or partial refund of any penalties paid, worth asking.

Or

Keep the property to avoid the penalty fee, and either just keep it (beware unoccupied for more than 30 days may invalidate your buildings/contents ins), or if income covering both would be a problem, let it out (consent to let reqd from Nwide).

You could either rent nearer to your employment, or apply for a let to buy mortgage or similar arrangement (ie some lenders completely ignore the property to be rented out, as long as their mge is going to be on your main residence and you meet the status & criteria checks).

If you do this, and retain your old property there will be a CGT liability on its sale (but this can be mitigated by unused annual cgt allowance, and previous owner occupier allowances).

Hope this gives you a few options to think over ....

Holly