Ported a c&g mortgage but just noticed

GARYHAMMERS

Hi, I ported my fixed rate C&G mortgage in 2009 to my new house, phoned C&G today to get a redemption penalty figure and it was 5% . I asked why as I took the original mortgage out in 2008 and moved a year later 2009 and had the redemption penalty at 4% of the outstanding loan. When I ported they started a new mortgage account at 25 years again, surely it should be my old account but ported pls help.

kingstreet

The term of the mortgage and the rates used will be whatever you put on the application form when you wanted a new mortgage to move house.

When you port, you don't move a mortgage from one property to another. You take out a whole new mortgage for the amount you need over the period you need it. A new mortgage account number is issued as it's a whole new account.

What the lender does is transfers the rate from your old mortgage and the time it has left, onto the new one on the day you sell the old property and buy the new one. Any extra money you are borrowing will be offered on whichever of the lender's current products you choose.

In the situation you describe, the term of the mortgage would not impact on the early repayment penalty. This is simply a function of the time remaining on that particular offer and any new one for extra borrowing.

I expect this is down to one of two things;-

- the port did not take place and your whole mortgage is on a new deal
or
- the penalty applies to the extra money over and above the ported element.

The only way you're going to sort this is direct with them.

Let us know how you get on.

dunstonh

When I ported they started a new mortgage account at 25 years again,

"they" will only reset the term back to 25 years if that is what you asked them to do. It would be on the application, the key features illustration and your contract/offer letter.

So, what did you request?

As Kingstreet says, it could be that part is on 25 years and part is left on the old terms (that would be porting) or it could be that you moved the whole lot to 25 years (that would not be porting). People often extend the term again on a move due to affordability reasons.