Lender won't "port" mortgage due to affordabilty

ShotInTheDark

Thanks Leon. If only banks looked at things objectively! Good to see all the bankers are still getting their huge bonuses whilst being unreasonable with the rest of us!

Thrugelmir

Advice can only be viewed at the point it was given. In the context of circumstances at that time. Hindsight is a wonderful gift. All you can do with it though is add it to the experience bank.

There's no recourse to redress. As the issue of affordability was entirely in your hands. Decisions you made.

ShotInTheDark

I hope you're wrong Thrugelmir. I had previously simply tried to port the SVR and was told that couldn't be done by the lender who also went through the affordability with me - I explained this to the FA. The FA was aware of the affordability issues we had had and actually contacted the Business Development Managers at the lender who suggested this route of product transfer followed by porting. The FA said he had access to different rates as an intermediary and after I had questioned things many times insisted we would simply be able to port the new mortgage over. In fact, when I briefly managed to speak to him yesterday (when he still hadn't managed to speak to the lender) he said he was shocked that they needed to do another affordability check to port the mortgage. You wouldn't believe how let down and distressed we feel at the moment. The FA still hasn't got back to us but I guess he may have come up with something but I am not holding out much hope for that at the moment.

opinions4u

The FA said he had access to different rates as an intermediary and after I had questioned things many times insisted we would simply be able to port the new mortgage over. In fact, when I briefly managed to speak to him yesterday (when he still hadn't managed to speak to the lender) he said he was shocked that they needed to do another affordability check to port the mortgage

He's either a liar or he doesn't know his job.

Which is it?

Good to see all the bankers are still getting their huge bonuses

The 27,500 made redundant by Lloyds Banking Group over the last couple of years aren't getting bonuses. Many lower paid front line staff are receiving much less than they were. Many mortgage advisers employed by banks and brokers are out of work and not earning bonuses.

At least you still have a job.

ShotInTheDark

Fair point on those out of jobs I was making a comment more on the high flyers - still a lot of money sloshing around at the top!!! Didn't really want to digress though.

Time will tell on the FA. I don't believe he is a liar but can't rule out the latter.

Thrugelmir

ShotInTheDark wrote: »

Fair point on those out of jobs I was making a comment more on the high flyers - still a lot of money sloshing around at the top!!! Didn't really want to digress though.

There's far more to banking than mortgage lending. As with any business people are paid on their contribution.

Mortgage lending is low margin, low profit business. Very much volume driven.

Thrugelmir

Leon_W wrote: »

For what it's worth ShotInTheDark, I agree with you.

If you want to port like for like, the LTV remains the same and the property is suitable security, then where is the problem ?

They have leant you the money and can't now un-lend it whatever your personal circumstances.

The answer is simple. It puts the ball back in the borrowers court. If they wish to move. Then they need to reduce their indebtedness. Carrot and stick.

Basic fact is that mortgage lending in total is contracting.

ruggedtoast

I don't totally understand this. Why did you go on a new 3 year fix if you wanted to move before that?

Your FA should have told you to take portability with a pinch of salt really. It sounds like your banks underwriting criteria have changed and they would now rather be shot of you to someone else. This seems to happen to me every couple of years with car insurance despite never changing my car, having any accidents or getting any points.

This does interest me though as I will be in your shoes in a few years time, albeit with a slightly better ltv. At random I checked Cheltenham and Gloucester who according to their calculator only include incapable persons as dependents (children and elderly parents) and would lend me more than will need.

I then looked at my actual bank who we completed with a few months ago who would now basically not touch me with a barge pole as a new borrower, although they fell over themselves to fast track us in the spring.

dunstonh

If only banks looked at things objectively! Good to see all the bankers are still getting their huge bonuses whilst being unreasonable with the rest of us!

Most bankers are low paid (below national average) and even with their bonuses that can still be below national average or thereabouts. This bash a banker attitude to tiresome and getting pathetic to be honest. It ignores the real issues and diverts attention from those more responsible (Labour party, civil servants etc). Why are we not bashing all the other professions that have damaged the UK economy in the past?

I hope you're wrong Thrugelmir.

he's not I'm afraid.

he said he was shocked that they needed to do another affordability check to port the mortgage.

You either have a newbie adviser or an incompetent one. Portability has always been based on lending criteria at the time of the port and is subject to re-assessment.