skipton wont let me port my new mortgage over

stolt

will try to make this as short as possible but we were buying a house privately and the vendor of that house was buying some land, the land owner has now said he can make more money selling to a developer so we are left without a house to buy because he doesn't want to move. the problem is that we had only just had a survey done on the house (400.00 pounds), and I was miffed of losing that much, what it seems now is that because we have lost that house we cannot use the mortgage offer for another house so we have been given two choices by our broker..... either use the offer as a remortgage on my house where in now (would I have to have a valuation on my house) or apply again for a new mortgage and yes its at a dearer rate...

this is what my broker came back and said....

> We are effectively back to square one. They will not
> allow a product switch where it has been withdrawn.
>
> The current one is a 6.39% capped tracker, currently
> charged at 6.19%.
>
> They wont allow switches which is why there is no
> point paying the booking fee up front!
>
> We could put the entire new product on your current
> home as a remortgage deal at £170,000 mortgage and
> then port it when you finally move.
>
> But that would at least secure it where it is. This
> is a little more expensive as you will pay a
> Redemption Fee £225 when you move the mortgage from
> one home to another.
''

''

silvercar

you would have to pay for a valuation of your current home. Whether they will lend that amount will depend on the value of your current property.

Do you want that mortgage on your current home? I guess it depends how soon you think you will be moving. Also, check your existing mortgage for early redemption fees and charges.

stolt

silvercar wrote: »

you would have to pay for a valuation of your current home. Whether they will lend that amount will depend on the value of your current property.

Do you want that mortgage on your current home? I guess it depends how soon you think you will be moving. Also, check your existing mortgage for early redemption fees and charges.

we currently owe 65k on this house and its been sold at 300k, i think by using the mortgage as a remortgage on this house then i can get the cheaper fixed rate.
we have no early repayment charges on the current mortgage because its now reverted onto standard rate. so confused now with it all got all these figures flying around me head.

we have obviously lost the house we wanted so it does look as if we will go into rented until something comes on the market.

stolt

just wondering if anyone else can offer advice on this

stolt

begging for a bit of advice now... mortgage broker mailed me with several other deals, skipton have up'd there tracker rate now 0.39% above the BOE.
''
Have presented all these three as a remortgage of your current home to a mortgage amount that is close to what you might need if you bought a similar property to the one you wanted previously.

I have based figures on £170,000 mortgage on a £240,000 valuation property. If the valuation of your current home is higher this helps considerably but wont change the deals that are available.

I have looked at low arrangement fees that provide free legal's and no valuation fee. There are some daft rates about which are low with £2,000 and £3000 fees being added.

In addition I have had to confine this to lenders that would go to an income multiple around the 4.5 times income level

Attached are new version of Skipton deal. First Active competitive two year fixed rate and Coventry BS with an offset account

can someone explain this to me,.... as my broker now wants me to re-mortgage on my house, which will need a valuation done (possibly another 400.00) and then we can port it across to another property when we move, so Ill need another valuation on the house we eventually find.

not sure how this is going to save me anything, why not wait until i find the house that i want (or is he thinking that mortgage rates will change)

feeling fed up now, there is a difference between the rates 20.00 a month.

homer_j_3

well I can tell you that porting with first active has always been a no-no. They have recently introduced a way around it but you have to go onto a Royal Bank of Scotland scheme as they are part of the same group. This effectively means a complete new deal and has no benefit to what you are doing.

I would get your broker to check this out (he/she should of done this before even telling you about the deal in my opinion)

Maybe something I have missed or not read properly but what is making you remortgage your current house?

If you have lost the property that you want, why can't you keep everything on hold until you find the next property? You then search the market again when you have found a new property?

I am pretty sure that you are creating a process that you do not need to put yourself through... unless you can point out something I have not fully understood.

The skipton capped has 2 versions - a 3yr and 5 yr deal. Off top of my head - 3 yr is 0.34 above BBR and 5 year is 0.39 above BBR. With BBR at 5.75 this will give you a pay rate of 6.09 and 6.14 respectively and a capped rate of 6.34 and 6.39 respectively. This seems pretty similar to the figures being quoted in your first post?

To be honest, I am not feeling your broker at all here as nothing seems to match the reality of the situation you present.

Just to clarify the 2 skipton deals:

3 yr tracker capped - tracks 0.34% above BoE - capped at 6.34%
5 yr tracker capped - tracks 0.39% above BoE - capped at 6.39% - both attract same fees as far as I can remember of £699 + valuation.

I am not even sure that what your broker is saying about the fact it has gone to offer is correct, I would be checking this out again - it may be worth checking again on this point. I know the lender has just installed a new computer system and they are feeling the pressure. Dont quote me on this specific bit though lol - the rest you can!

stolt

homer_j wrote: »

well I can tell you that porting with first active has always been a no-no. They have recently introduced a way around it but you have to go onto a Royal Bank of Scotland scheme as they are part of the same group. This effectively means a complete new deal and has no benefit to what you are doing.

I would get your broker to check this out (he/she should of done this before even telling you about the deal in my opinion)

Maybe something I have missed or not read properly but what is making you remortgage your current house?

If you have lost the property that you want, why can't you keep everything on hold until you find the next property? You then search the market again when you have found a new property?

I am pretty sure that you are creating a process that you do not need to put yourself through... unless you can point out something I have not fully understood.

The skipton capped has 2 versions - a 3yr and 5 yr deal. Off top of my head - 3 yr is 0.34 above BBR and 5 year is 0.39 above BBR. With BBR at 5.75 this will give you a pay rate of 6.09 and 6.14 respectively and a capped rate of 6.34 and 6.39 respectively. This seems pretty similar to the figures being quoted in your first post?

To be honest, I am not feeling your broker at all here as nothing seems to match the reality of the situation you present.

Just to clarify the 2 skipton deals:

3 yr tracker capped - tracks 0.34% above BoE - capped at 6.34%
5 yr tracker capped - tracks 0.39% above BoE - capped at 6.39% - both attract same fees as far as I can remember of £699 + valuation.

I am not even sure that what your broker is saying about the fact it has gone to offer is correct, I would be checking this out again - it may be worth checking again on this point. I know the lender has just installed a new computer system and they are feeling the pressure. Dont quote me on this specific bit though lol - the rest you can!

thanks homer_j for advising, from what i can see and read from his replies (i couldn't get him on the phone today) but because we had a private sale on a house going through I gave him a chq made out to skipton for 400.00 for a valuation which was done and then our seller decided he wasn't moving anymore. and my broker came back and said unlucky but you cant continue with that mortgage any longer because once the sale has fallen through I cant use it on another property and pay for another survey, this is because they withdrew that mortgage deal and now have it as 0.39% above BOE.


it is quite tight to the wire as far as monthly payments going and I wasn't happy that i now had to go for another mortgage so he was suggesting that I still apply for the mortgage (new rate) on my existing home and then port that to the new house we find. Like you say does seem a lot of messing around but i just assumed that he thought that the rates may go up so was trying to get us that deal.

homer_j_3

or the sceptic in me is saying they are trying to get 2 lots of commission from you.

What if you dont find your next house and you want to go into rented as you say - break the chain etc. You will end up paying a fee to redeem and its costing you loads. You may get it back when you return but I cannot see how it is best advice to:

1 - put you at risk in portability being refused (as it can easily be done)
2 - put you through potential additional admin/closing fees/red charges if you cannot port

If you read your original post you said the capped rate was currently 6.39% capped but paying at 6.19%. That is wrong - read my last post to show you what the rate it is paying at so the current product is still the same product by the looks of it bar the fact it actually pays at 6.14%.

You will have lost the valuation money if valuation has taken place.

All I will say is - your adviser seems to be doing things that can be put to you in a way that you feel is securing your best deal - I maybe wouldnt do it the way your broker has done it.

My experience is telling me that you are bringing more risks to the table by putting more money against your current home with the potential you wont be able to shift for 3 or 5 years without an ERC and additional fees should portability be declined.

It also tells me that when you are being given the various deals that you have been given - 2yr fixed with first active or an offset rate with coventry. Has your broker actually decided or found out whether you want/need a capped, fixed or offset product and do you want it for 2, 3 or 5 years? I could understand 3 options of a similar type but no wonder you are confused.

I am 99% certain first active deals dont allow porting.

Overall, I am hoping that your adviser is not pulling the wool over your eyes as I do find it quite worrying. I would maybe look for a 2nd opinion.

This transaction is something you cannt afford to get wrong.

stolt

thanks for that, that does seem a lot clearer in my head now, and yes I read how you have said in your post, and it makes no sense at all when there is a chance i will have to rent before finding a house because i wont be able to afford the mortgage and the rent.

the bit in my first post regarding the rate was dragged from the email from the broker and it was he that mentioned about paying at 6.19%.

He did ask me what i was looking for and initially it was 5 yr fixed at the least maybe a 10yr fixed, and he found this tracker rate which seemed a good deal regarding fees and monthly rate and if it went down it was bonus and if it went up i was still within our budget. I kept doing the 2 yr an 3 yr fixed at the start and i said i wasnt interested in them but i think he was showing comparisons in the rates between the different yearly fixed rates.

once again thanks for taking the time to go through this with me.

homer_j_3

OK, No problems.

Nothing wrong with having an initial ideas about what you wanted and then the broker offering different solutions. Especially as many people do not even know about capped rates.

You need to think about how long you are going to be in your next house for term of deal - if its "an in betweener" house 5yrs may be too long - if its your final house and its "a keeper" then you 5yr or more may be better for you.

You need to look at the payment at the capped rate on the capped product and if its still affordable then your next decision should be based on whether you feel rates will drop a couple of times from its current position as this is really when you will see the benefit over a similarly priced fixed rate equiv.

Offsets should only be considered really if you are looking to put some savings against your mortgage in addition to your deposit and intend to keep building on this.

Work out what you want - dont be fooled into remortgaging because the mortgage has to be paid when you sell - you cannot keep and pay rent too. So you will repay your remortgage and pay the erc's and fees. You may get the erc's back from them if you return within 3-6 months but that pressures you into getting a house that you may have otherwise felt that was the best of a bad fit.

stolt

homer_j wrote: »

OK, No problems.

Nothing wrong with having an initial ideas about what you wanted and then the broker offering different solutions. Especially as many people do not even know about capped rates.

You need to think about how long you are going to be in your next house for term of deal - if its "an in betweener" house 5yrs may be too long - if its your final house and its "a keeper" then you 5yr or more may be better for you.

You need to look at the payment at the capped rate on the capped product and if its still affordable then your next decision should be based on whether you feel rates will drop a couple of times from its current position as this is really when you will see the benefit over a similarly priced fixed rate equiv.

Offsets should only be considered really if you are looking to put some savings against your mortgage in addition to your deposit and intend to keep building on this.

Work out what you want - dont be fooled into remortgaging because the mortgage has to be paid when you sell - you cannot keep and pay rent too. So you will repay your remortgage and pay the erc's and fees. You may get the erc's back from them if you return within 3-6 months but that pressures you into getting a house that you may have otherwise felt that was the best of a bad fit.

hi thanks once again for the advice, we definately wont have any savings to put to the mortgage so a offset is no good for me. the house we are buying will be a long time house so it would definately be a 5-10yr fixed or capped rate mortgage or even a capped/tracker rate.

i did originally opt for the 5yr capped/tracker because i thought the rates would drop.