Turns out portable mortgage isn't....what to do?

007Mole

Our house has been valued at £380-385k. We took out a lifetime tracker mortgage with Santander (base rate plus 0.5%), for which we have been paying more than required, and now owe £270k. The mortgage is portable, but we have just found that that means the product not the value! The bank will only offer £120k for any prospective move due to our change in circumstances. This seems staggering given that they are aleady bearing the £270k risk and, now that we are unable to make the move we want, they will continue to do so! To add insult to injury, they have also refused to alter the mortgage details. It was set up in my husband's name (despite my being the major earner at the time and my earnings being taken into account) as I am a discharged bankrupt, but they said at the time that I would be able to be added in a couple of years time. They are now refusing to add me or to take account of my earnings as they refuse to have anything to do with bankrupts, discharged or not (not sure if they realise we also have a business account with them!), and so the mortgage as to stay in my husband's name.

Any ideas as to the best way forward? We run our own business, which has been running successfully for nearly 5 years and have 2 small children. We are considering selling up and renting until such time as we have saved more money, but I am not sure if there are any other options that we could be exploring.

dunstonh

The mortgage is portable

Most mortgages are. However, it is always subject to lending criteria in place at the time.

This seems staggering given that they are aleady bearing the £270k risk and, now that we are unable to make the move we want, they will continue to do so!

They have already accepted and accounted for that risk in their funding and liabilities. New applications are treated as new risks and you dont meet their current criteria. They also have the security of the house which is worth a lot more than the debt.

Any ideas as to the best way forward?

You can ask for an appeal on the decision with an underwriter which they may consider but at the end of the day, it is up to them.

How much is the new property worth and how much were you looking to borrow against it?

Dave_Ham

If you search on mortgage port, many people on here are having similar issue - many with Santander.

The issue is that all of us in the industry know that they only give you the opportunity to port, subject to circumstances.

The issue remains that the bank staff (and I think brokers too a bit) do not cover this in enough detail as there are too many people who do not understand this well enough.

In your circumstances unfortunately you will not get this with Santander. This does not mean you will not have options, you are likely to but not at the Santander rate I am afraid....

007Mole

Many thanks for those points. We are not looking for any more money, as we are looking at properties in the same price bracket. If we are able to get something different, then we realise that there will be a change in the terms, just not sure if the banks will work on the same multiples as Santander!

getmore4less

review why you need to move and look for other options that don't involve moving.

At that level you are looking at a moving cost of around £20k that will go a long way.

if you cant port you are then looking at borrowing costs of say 3.5% an extra 2.5% on £270k thats anoither £6750year

007Mole

We are relocating, which is why the move. And preferably before the children start primary school! We have £30k in savings, which would have covered stanp duty, fees, etc, and in-laws have offered a further 16-17k to assist, so the cost of the move not an issue. And, as I said, we are currently paying over what we need to the tune of around £600/month!

getmore4less

007Mole wrote: »

We are relocating, which is why the move. And preferably before the children start primary school! We have £30k in savings, which would have covered stanp duty, fees, etc, and in-laws have offered a further 16-17k to assist, so the cost of the move not an issue. And, as I said, we are currently paying over what we need to the tune of around £600/month!

WHY

What makes this move worth £30k+

JimmyTheWig

getmore4less wrote: »

WHY

What makes this move worth £30k+

Presumably, if they are relocating, they want to live in a different part of the country...

007Mole

Exactly! Peak District and hills win anytime over the flat lands of Cambridgeshire. We have no ties here, the area we want to go to is equidistant between both sets of parents, schools are better, scenery is better, and business prospects are better (Manchester, Sheffield, Stockport, Liverpool, etc)....all-in-all, a no-brainer, apart from the slight mortgage hiccup!

noddynoo

Things have changed a relative of mine is wanting to do the same with exactly the same priced house as yourselves. They have a 220k mortgage on it (first direct) and have been told this time taking into consideration affordability they will only lend them 125. They did appeal and it was still no so they are staying put.

Morgage_Confused

off topic but....Not wise considering your rate is at 1% and the fact they are not exactly doing you any favours. That overpayment should have been going into ISA's or other account paying better interest, 3-4% is easily achievable.

007Mole wrote: »

And, as I said, we are currently paying over what we need to the tune of around £600/month!