Pension age prisoner

jaqi4

I wonder if anyone can help please? I have just been told by Leeds BS that, despite the original mortgage contract telling me my mortgage was portable, they can renege on this. If I wish to retain my Interest only mortgage, I can only "port" 50 % of the value of the new house (and, as I am still in a fixed rate, I will have to pay a massive penalty for the enforced part repayment!)
I asked about changing to a Repayment mortgage and was told that,due to a change this month in the age criteria , I have to reduce the period of the mortgage from 17 years to 6! Impossible to repay the amount in that length of time It amounts to being held prisoner and I am so fed up that it seems they can do this. This is despite never having any arrears or unpaid debts in 35 years.
Can anyone tell em if they know of any other source of mortgages -I have two buy-to-let properties which would pay off the residential mortgage in a few years time, but Leeds will not accept this as equity ( they also take the mortgages of these into account as part of necessary expenditure but refuse to take the much higher income from rent into account as income! They win every time...) I only need 60%, so it is not as if I am a huge risk
Help!

dunstonh

I have just been told by Leeds BS that, despite the original mortgage contract telling me my mortgage was portable, they can renege on this.

Portability is always subject to lending criteria at the time. So, not so much they can renege on it but more a case that you may not meet lending criteria at that point.

I asked about changing to a Repayment mortgage and was told that,due to a change this month in the age criteria , I have to reduce the period of the mortgage from 17 years to 6!

Do you have a repayment vehicle for the interest only element of the mortgage? Lenders are typically only fussy if you dont have a repayment vehicle.

I am so fed up that it seems they can do this.

Their hands are partly tied. The FSA has told them to stop using interest only as a means of affordability and any new mortgage would be viewed as post credit crunch criteria with a more stringent requirement than the credit giveaway during the credit boom.

To come up with ideas, the mortgage advisers here would need more detail.

GMS

Leeds are not going against the terms of your mortgage. The ability to port is always based on meeting criteria on the date of application to port. Due to changes to criteria you do not meet the criteria so cannot port the mortgage.

There may be options elsewhere. Speak to a broker to see if there is a way forward.

Could you refinance one or more of the Buy to Lets to release the difference required to port your current mortgage?

jaqi4

Thanks for your advice -spoken like a true broker! I do understand that, despite having a contract, they can change the selection criteria - I could accept it if my circumstances/income/health had changed . We have a larger income than many , and we have sufficient equity in the two buy to lets to cover 80% of the new mortgage - that was why I suggested a 20% repayment. They said no to everything: it is just frustrating that we are a pretty good bet (even if we die, we have sufficient life cover!) I will contact a broker - my last one gave up and went to be a dance teacher.

Thrugelmir

jaqi4 wrote: »

despite having a contract,

A fallacy. Its not a contractual term. Lending money has always been subject to current underwriting criteria.

In years gone by there was no such thing as porting at all.

It was introduced as a means of retaining customers. Which now isn't the case. As lenders will happily let you remortgage else where. As by redeeming your mortgage. They can relend the money at a better rate.

opinions4u

it is just frustrating that we are a pretty good bet

It sounds like they think you're a good bet. They've not declined you. They've just said no to the interest only arrangement that you want.

Have you looked at longer term repayment mortgages with them?

dunstonh

I do understand that, despite having a contract, they can change the selection criteria

You miss the point. Portability is not a contractual event. Any portability option is subject to lending criteria at the time.

I could accept it if my circumstances/income/health had changed

The world has changed. Credit crunch following the credit boom, global recession, a retrospective regulator changing it's instructions.....

They said no to everything:

No they haven't. They said no to interest only. They are quite happy to lend to you on repayment basis.