santander refused to port my mortgage

bob60

hi everyone

i have a 5 year fixed rate with abbey national - now santander. i am 4 years in and am moving in a few weeks to my new property. in order to ovoid the penalty charge i am porting over my mortgagee to the new property. santander have just written to me refusing my application.
my original mortgage was 160.000. with overpayments it is now 130.000. my new property is 400.000. i am downsizing.
i smell a rat here. if they don't give me a mortgage i will occur a £6000 penalty charge.

i am in the same job and salary

can anyonr please give me any advice?

many thanks

somethingcorporate

What did your original mortgage say about porting? Not all mortgages have this as a standard term.

Thrugelmir

Have they declined your mortgage application?

If so then they've detected something else. Maybe from your credit files while processing the application.

opinions4u

Porting of a mortgage product is not a contractual right. They don't have to offer you a mortgage on the new propoerty.

Evilm

Was the deal you were given for a certain LTV? If you are downsizing and your deal was for 25% LTV only and your new situation puts you as 32% LTV then its possible thats the reason.

Or as the person above said you have failed their credit check. Or they have found something about the property they don't like.

Also does your original paperwork say that the deal was portable? As already said not all of them are. Its also possible that when Santander took over the mortgage they sent you information updating their terms to Santanders instead of Abbey Nationals and told you then they wouldn't allow you to port the deal.

I'd ask them for the exact reasons they won't allow the port.

maninthestreet

So what was the purchase price of your current property? What is your gross annual income?

kingstreet

So you're applying for £130k on £400k and you've been declined. What do your credit files look like? Do you have a lot of other credit?

puddleduck

No advice, but we had the same. Phoned them to ask how porting the mortgage worked and they said our 100k mortgage on a 300k property, 4yrs 5m into a 5yr deal could only be ported as £42k ( assuming approx same value property or more). We've never missed a mortgage (or any other) payment, have no other outstanding credit, and our incomes have increased and main income is relatively secure (NHS). When I asked why there was such a difference they said they'd changed their assessment criteria and that the arrival of our 3rd child since we first took out the mortgage means we are now "a much higher risk". They were happy enough to carry on lending to us if we stayed put though and were even willing to offer additional lending!

We bit the bullet and sold anyway.