abbey flexible plus mortgage (cant get further advance !)

derby1

hi all
with regards to over paying that would be a crazy move as i can get interest payed on my savings at 3% so why would i pay down a debt when the interest payable is .99% ?.
I can not get a second mortgage as it is with in the powers of santander to increase my loan as out lined in there tand c's there for in theory pushing the second mortgage in to negative equity,there lies the problem santander wont give me any more money and another lender wont because santander could.

Senior_Paper_Monitor

AS GMS indicates what you are requesting is outside of Abbey/Santander criteria ...

1) their maximum ltv with an acceptable investment vehicle for repayment is 50%

2) you haven't answered the question about investment vehicle so I assume there is none, so you won't get interest free lending from anyone at any rate in terms of a mortgage (unless your equity is in the region of £150,000 + in which case a small number of lenders, subject several other criteria, will consider future sale of property with downsizing as a repayment vehicle.


Any solution is going to be considerably more expensive than your current rate.

JimmyTheWig

derby1 wrote: »

with regards to over paying that would be a crazy move as i can get interest payed on my savings at 3% so why would i pay down a debt when the interest payable is .99% ?.

I take "over paying" in this instance to mean paying money into a savings account with the sole aim of putting it against your mortgage as and when required.
I agree that in your position I wouldn't actually want to physically reduce my mortgage balance.

I can not get a second mortgage as it is with in the powers of santander to increase my loan as out lined in there tand c's there for in theory pushing the second mortgage in to negative equity,there lies the problem santander wont give me any more money

I don't quite understand this. Are you saying that the total amount you want to borrow (current mortgage plus second mortgage) is more than the value of your house?

and another lender wont because santander could.

Correct. Given that your current mortgage is with Santander I don't believe you can get a second mortgage elsewhere.
You are free to remortgage to a different company for the full amount you want to borrow. But obviously that won't be at the rate you're currently on!

Jimbo7676

Hi Derby,
I have the same product, 0.5% above BR though and a very similar problem. My girlfriend and I tried to port it to buy a new house, as it was sold in 2005 as a rate for life that you "just call up and move over to you new property" when you move. When I called Santander in October they said we could borrow £730K on our incomes. We are keeping our two flats to rent out and moving into to a new house, they said that was fine as they are easily self financing with LTVs of < 50% on the buy to let mortgages. We tried to buy a house for £550K in April and when it came to porting the mortgage its was fine until we got to the underwriters. The first one turned the port down because he said I had to sell my flat, as it was breaking “The spirit of the original agreement” and I was buying a “chain” of properties. I complained and they agreed this was twaddle. The second go (after hours and hours on the phone and loads of stress) they said that suddenly the flats were not self financing , that we could not use the rental valuations on them as proof of rental income so all the mortgages would have to be covered by our income (which we could afford). This is in contradiction to their BTL policy on the Abbey for Intermediates website. They then decided that all three mortgages would be at 6% to “stress test” even though two of these were fixed rate mortgages at much lower rates and the BoE base rate is not 5.5%. They then said that we would have to pay bills on the empty flats that would not be let out, according to them. This calculation meant that we could not afford the 1% mortgage and were turned down.
We are buying a different house with the PostOffice (BOI) for £525K, they approved that loan the same day as we applied, its for 3.79% though not the 1% of the Flexible plus. It seems as though Santadare are reneging on their side on these mortgages, as they just dont want to lend at 1%. and make a loss. Ive been though their complaints procedure , but they are not budging. I can highly recommended the PostOffice, they have been excellent to deal with.