Mortgage Help Please

Dollydreamer_2

Although I have lurked on here before, and thought what a helpful site it was, this is my first post, Any help would be appreciated.

Three years ago, we remortgaged . We got a tracker three year rate with Alliance and Leicester - all arranged via a mortgage broker, without any problems. We told him at the time, we would be moving house at the end of the three years, and he suggested a portable mortgage - ideal, as he said we could transfer it to the new property.

We got an offer for our house, and its about to complete.We put an offer in on a property,which was accepted. Contacted the broker to sort out the porting of the mortgage, and a new rate .....only to find "porting" meant the rate, not the mortgage to the new property.

Also, Alliance and Leicester is now under Santandar. We were really stressed to find we had to apply for a new mortgage (after thinking it would just move with us). We have spent an hour on the phone fillling forms in - and they did a credit check, which came back fine.

The property we are buying is £125,000. We have a £48,000 mortgage on the old house. We will have £87,000 to put towards the new house, therefore reducing our mortgage to £38,000.

We did have an interest onlly mortgage, but they have said they can only offer us a 12 year repayment mortgage, obviously more money per month,but manageable.

They are ringing back tomorrow,for a 90 minute interview, with a Santandar mortgage advisor. We have to have bank statements, payslips etc. This is to assess our affordability. We are already stressed about this, because due to a water tank burst in the old house, we have paid to have the work done before selling. Obviously this has stretched our finances somewhat,something we could do without when applying for a mortgage!! We have gone up to our overdraft limit in the last month. We immediately transferred funds from our savings account to cover this.

My question is,will the spending on our current account over the past two months, and the overdraft useage, scupper our mortgage application?

We have no credit card amounts outstanding,nor any HP payments or loans. We have £10,000 in a savings account for emergencies.

Our broker said we would be better stay with Santander to avoid the ERC from them, and the new mortgage fee if we moved lenders.

Just wanted to ask if you thought we stood a chance of getting a new mortgage with this lender?

Thanks for your help!

Dave_Ham

I think you are stressing over nothing, you are low risk to the lender (even Santander)

From the highlights I would expect you to be ok here.

All the best

kingstreet

If you took a three year tracker over three years ago, aren't any penalties now over and you could get a new mortgage anywhere you can get the best deal?

Portability is transferring the rate from the old mortgage to a new one if you qualify. Is there anything worth porting? Are you on standard rate now, 4.79%?

What are they offering you for the new mortgage?

Crashandburn

Dollydreamer wrote: »

only to find "porting" meant the rate, not the mortgage to the new property.

Check which 'standard' rate you are on with A&L. As KS says, you must be close to coming out of the deal if it was 3 years ago.

They had a few standard rates so it maybe the old tracker lifetime rate which means keeping that deal will be well worth doing.

Dollydreamer_2

I do not have the rate offered to hand, as my husband has the paperwork. But the broker said it was good - better than the other lenders he had checked for us.

My husband is not happy .....he came out of work at what is his busy time, yesterday, to wait for the 90 minute phone call, to check our affordability with their mortgage advisor. When 15 minutes had passed, he rang to find out what was happening. Kept waiting,on a 16p minute line. Got through and was told the appointment was 4pm. We had written the time down, and also they sent a confirmation email saying it was 3.30pm.At 4.45pm my husband was fuming, and again rang, going on hold for ages. No one seemed able to explain why they had not rung us.

We are now waiting for them to ring back with a new appointment.