Santander's 'portable' mortgage product is going nowhere!!

BambiManchester

I took out an Santander mortgage last year and was very keen that it was entirely portable as we knew we'd want to move house during the mortgage term.

We're buying a new house now and have applied for a top up (a joint mortgage, all completey affordable and my partner's credit rating is excellent) and to 'port' the mortgage across to the new property. We've been advised by Santander that I no longer fit their new tightened risk criteria (I believe this came into effect in January this year) and have been turned down.

This was due to a default on a credit card 5 years ago!! I've been squeaky clean since then.

I've checked my key facts doc and accompanying booklet and there is no mention of portability being subject to adhering to their risk criteria at all - only guidelines around LTV.

We now have no other option than to redeem the mortgage to the tune of +£5000 penalty fees :mad: and we've had a mortgage agreed with another provider.

Do you think we have a case to reclaim these penalty fees because we took out a mortgage based on its portability and Santander have moved the goalposts!

First time on the forum so thank you in advance for your advice and opinions.

Thrugelmir

BambiManchester wrote: »

Do you think we have a case to reclaim these penalty fees because we took out a mortgage based on its portability and Santander have moved the goalposts!

No case to answer. Porting has always subject to current underwriting criteria at the time of a new mortgage application. The lender can move their goal posts to suit market conditions as and when they wish.

opinions4u

Unfortunately the post above is spot on.

The product is not a guarantee of acceptance. Portability does not compel a lender to lend.

GMS

Portability is not an automatic feature of any mortgage.

It is there assuming criteria is met for a new application. Porting is not a case of simply switching the current mortgage. It involves repaying the old one and opening a new one. Any penalties would be waived.

If you do not meet criteria as a new customer you cannot port.

Unfortunately lender have done nothing wrong and there are no grounds for complaint.

BambiManchester

Thanks everyone for your replies. Bit gutted but at least I won't waste time with a complaint!!

Dave_Ham

Hi there,

Everyone above is absolutely correct. Only way I could see you getting around this is to apply to obtain "consent to let" and see out the fixed term with a tenant.

Obviously this depends at what part of the sale you are up to, your confidence in this strategy and notably your ability to raise the deposit on a new place without the equity from the old...

Thought I would mention in case your situation lends itself to at least a potential solution.

Santander caused a lot of grief earlier this year by a change in their policy, but it is their choice to make..

All the best