CASH BUYERS BEWARE when porting mortgage

Izzy2013

Hi There

We were told by our mortgage provider we could port our existing mortgage any time within 90 days of selling our house. Two weeks prior to selling our house I contacted them to ask to do just that and port our mortgage to our new house and they are saying no because we happen to have already bought the house with some family leverage on a cash basis so we didn't loose the property.

At no point was I told we would not be able to port the mortgage if we had bought the property... They are saying it's policy but this has left a huge hole in our finances as we have a .75% tracker and the best they can offer on a remortgage basis is nowhere near that. This so called 'policy' makes no sense at all. We are asking for a small level of borrowing under 100k which we need to do renovations to the house LTV for the amount we need is just 15%....the risk to the mortgage company is minimal... It's crazy and they have totally moved the goal posts on us...has anyone else had a similar scenario I am not sure what to do next but I was told by them I could port my mortgage and now they say I can't - maddness.

kingstreet

Porting is typically based on a simultaneous sale and purchase. You then move the old rate from the old mortgage to the new mortgage as one ends and the other begins.

A gap between the two normally means the old rate dies when the old mortgage is repaid.

getmore4less

Definately seen porting with gap too new purchase offered,

What is not suprising is porting to a house you allready own.

kingstreet

getmore4less wrote: »

Definately seen porting with gap too new purchase offered

A few lenders used to permit it. Early repayment penalty was levied at sale, then refunded at completion of new mortgage. Nationwide was one. Now it only allows simultaneous sale and purchase. I can't speak for other lenders.

I don't know any lender which allows a port with a break to a property which is already owned by the borrower.

Izzy2013

Then why wasn't I told at the time I called to ask about porting. I can't remember now but I may even have mentioned we might cash buy the house to secure it and now they have renown this at us out of the blue....we only secured the house with a bridging loan 4 weeks ago - if we had known this would have been an issue we would have used our ported mortgage to help buy the new property instead and used our own capital to pay off the existing mortgage.... They have made assumptions on our behalf and left us in the lurch.

ACG

If you mentioned it on the phone and they did not pick up on it, they I would say you have an argument.

If you did not specifically mention it and it is not part of their process I cant see how you can expect them to tell you that they would not allow you to port on a property you already own... If they went through everything they did not do you would be on the phone all day.

Bantex_2

I would imagine they are losing money on a low value 0.75% tracker and just wanted rid of it.

densol_2

I wouldn't say you are "porting the mortgage to buy a new house " you are now seeking a different product - raising equity on a house you already own. Albeit owned for a very short time. Did you not check before you bought the new house that this could definitely be done as it's not what I understand porting is about and neither do the bank.

amnblog

What did your broker say you should do?

haras_nosirrah

If you asked about porting they wouldn't have told you about this as you aren't porting. Porting is moving the mortgage from one house to another as in selling the property and using that money to buy another property. You already own the house so you are remortgaging.

Did you go via a broker or telephone a call centre? If you sat with someone and said I am planning on buying the property for cash now and then moving the mortgage to the new property they would have told you it didn't work like that. If you said can I port the mortgage when I sell the house and didn't volunteer that you already own the other house then they would have answered yes as you can move the mortgage subject to credit and affordability but only if you are not moving it to a house you already own

Think you have Lost your tracker

If you specifically told them you were moving the mortgage to a property you already own you may have some comeback. If you just asked if you can port the mortgage and didn't volunteer that you already own the house then I doubt you have a complaint.

plunt

is there no way you could potentially sell the property to a family/close friend or even just sell a portion of the property and then buy it back. if you could sell just enough of it to stay under the stamp duty threshold... Though no idea about the legality of this plan !