Porting a Mortgage

Crustybufton

I have just been refused the porting of my mortgage by Virgin money. I took out this mortgage on the basis it would be portable as I knew i would be moving. The new mortgage is a much lower amount than before so the payments are much more affordable. Presumably Virgin are just after the redemption fees rather than the mortgage business.
Does anybody else think this is looking like the new PPI issue?

OneEngland

Have they given a reason for not allowing you to port?

mrginge

Have they said that you cannot port the rate or have you failed affordability on your new application?

MABLE

I was given to understand that lenders should not be applying the strict rules when porting. Its only when you want to take out a new mortgage with increased borrowings they should be applying the new rules.

Crustybufton

I have failed the affordability under the new rules apparently. I have got the mortgage placed elsewhere at a similar rate but I will obviously lose the redemption fee.

mrginge

MABLE wrote: »

I was given to understand that lenders should not be applying the strict rules when porting. Its only when you take out a new mortgage with increased borrowings they should be applying the new rules.

I'm afraid your understand is slightly incorrect. The regulator has said lenders can bypass the checks if they want to. There is no rule that says they have to.

mrginge

Crustybufton wrote: »

I have failed the affordability under the new rules apparently. I have got the mortgage placed elsewhere at a similar rate but I will obviously lose the redemption fee.

Your issue is nothing to do with porting then. Porting has always required a new application to be made.

amnblog

mrginge wrote: »

I'm afraid your understand is slightly incorrect. The regulator has said lenders can bypass the checks if they want to. There is no rule that says they have to.

You are both incorrect.


Porting is new underwriting - is was before the mortgage market review - it is since.


A porting feature is just product related allowing the client to more the rate to a new property (subject to underwriting).

amnblog

Crustybufton wrote: »

Does anybody else think this is looking like the new PPI issue?

It is not 'the new PPI issue'.


Your original mortgage offer probably contained wording like this is section 10


If you move house, and we are able to offer you a new loan, you can keep this mortgage product and you will not have to

pay an early repayment charge if you transfer the balance and the terms of this product to the new loan for the remainder of the Benefit Period.

This product may not be available for any additional borrowing above the balance transferred when completing your new mortgage.

This does not guarantee acceptance of any future loan application.