Co-operative Bank totally unethical - can't port my mortgage or rent empty house

hostie

I moved to another city and no longer need the house that I have a mortgage on. Yet they won't let me port the mortgage as I don't meet their new buyer criteria (now in temporary employment), and they won't let me rent it out as they do not offer buy to let mortgages…

Total nightmare!

Anyone else in a similar situation or have any suggestions?

ACG

What is ethically wrong with that?

Being ethical is not doing what everyone wants, their ethics are based on them not investing with people that trade in arms or test on animals etc.

Sell the house, get a new mortgage with a new lender where you do meet their criteria?

hostie

It is unethical to sell a mortgage to someone with the promise that they can port it, and then five years later, say sorry, you can no longer port this mortgage.

Now that I am in temporary employment, I will not be able to get a new mortgage. My circumstances have improved considerably since I first took out this mortgage and I am now in the position that I don't have to work full time. All I want is for them to honour the original agreement.

hostie

It is all very well not investing in the arms trade, but if you are ruthless to your ordinary customers, then the whole concept is morally questionable.

ACG

Part of the terms of being able to port is that you meet the lenders criteria at the time of applying to port the mortgage... this is the same with all lenders.

You have changed your circumstances and they may have changed their criteria - you agreed to those terms when you took the mortgage out.

So who is the unethical one, the company doing what they said they would do or the person slating them because they cant get what they want?

kingstreet

Porting is the ability to move the rate from an old mortgage, to a new one with the same lender when you move house.

This has always been subject to criteria, affordability and valuation as it's always a new application. When you sell, your old mortgage is repaid and a new one is required for the next property.

It is a popular misconception that you can move a mortgage from one property to another.

dimbo61

Why have they turned you down for Consent to Let?
If you have enough equity can you not look for a BTL mortgage with another Lender.
Rent in the new area for a year and hopefully get a Permanent Employment ( Now in temporary employment ) and then get another property if you can under new MMR rules :-(
Or just sell up

hostie

I think it is very misleading for the Co-op bank to make a big deal about being able to port a mortgage, when in fact, what they really mean is that you can sell up and apply for a new mortgage...
They are basically advertising a feature that doesn't exist. Totally misleading and in my view, dishonest.
Dimbo, I just spoke to them on the phone about letting and they said they didn't know what their position was on letting yet and to phone them back in two weeks.

hostie

I actually think this is a trading standards issue. Just looked at my original paperwork:
'all our mortgages are completely flexible, so you can adapt them to any changes in your circumstances and lifestyle. As you'll see, this opens up all kinds of possibilities… (then one of the possibilities they list is) 'Move home and take your mortgage with you'
So essentially they said to me that I could move home and take my mortgage with me, but in fact, I can't. I have to re-apply for a new mortgage and it does matter that there have been a few changes to my circumstances i.e. have had to move to another city for a new job. I feel I was totally mis-sold.

dunstonh

So essentially they said to me that I could move home and take my mortgage with me, but in fact, I can't.

It isnt saying that. All lending is subject to criteria at the time.

hostie

It is saying that dunstonh. The actual wording is 'Nowadays people rarely stay in the same place for life. So, if you fancy a change at some point in the future, the good news is that you can take your mortgage with you.'

It says that in the original documentation. Yet I phoned them today and I can't.