Moving with a mortgage

movinghome

Sorry i this has already been asked, I couldnt find anything on it. We are selling our house but to avoid a chain, we are going to move in with family then look for some where to buy. When we spoke to our mortgage adviser last year we discussed how you can hold your motgage for 6 months and continue it on the new house.

Our mortgage is a fixed rate till next year, and now its come to moving the company have advised us they have just scrapped that option and so now we will have to pay to come out early, and then pay for a new mortgage when we buy.

Does anyone know if the bank can just change this midway through, if we have a fixed contract does that not mean they cant change the conditions half way through? I am planning to write to them about it but thought I'd see if anyone else knew about this?

Thanks

ACG

If your mortgage is portable then a lender cant just remove that option - it forms part of the agreement you made with them.

Have a look at your paperwork from when you took out the mortgage, check whether it is portable then question the lender on how they can change your agreement.

Yorkie1

Porting means you can move your mortgage rate from one property to another if you sell the first one and buy another (assuming you still meet their lending criteria). As ACG says, if the product is portable then they can't just remove that from the details.

However, these days, most banks require the sale / purchase to happen at the same time.

You are not doing this, and therefore you won't fit their criteria unless the original product initially specified portability with a delayed onward purchase of 6 months. I very much doubt that it did.

As you are selling within the fixed rate period, there will be an early redemption charge for which you are liable.

They aren't really changing the T&Cs - you're just doing things in a way which doesn't fit their criteria.

Wh05apk

Sounds like a bit of mis-interpretation here, most lenders will allow non simutaneous completion, however you will pay any erc's on sale, and provided you complete again within 3 or 6 months they will refund the erc's. This is not normally in the t&c's as this is a concession.