Help! Natwest refusing to port my mortgage!

Tightscotsman

I have a mortgage with Natwest on the Homebuy Direct shared Equity scheme.

I asked them a few weeks ago if my mortgage was portable as I'm within a fixed rate deal - they said yes.

I then sold my house and reserved a plot for a new house and they are now saying it's not portable! All my paperwork (original deal and subsequents) say it's portable and mention nothing on Homebuy direct mortgages being not able to port.

I've ended up with £2700 early redemption charges, what can I do?

betmunch

Its portable, subject to you meeting the lenders criteria at the time of the porting application.


I suspect you do not meet the current criteria.


There is no automatic right to port your mortgage, which many people get caught by.


As for what you can do, depending on the reason for the decline, you may be able to appeal. Otherwise, proceed with a new lender paying the ERC, or don't move.

Tightscotsman

Thanks, I do meet all off the lending criteria and have an agreement in principle elsewhere.

I can't get the next lender to pay the ERCs as its a help to buy on the next property.

Any other ideas?

Landofwood

Tightscotsman wrote: »

Thanks, I do meet all off the lending criteria and have an agreement in principle elsewhere.

I can't get the next lender to pay the ERCs as its a help to buy on the next property.

Any other ideas?

You don't meet Natwest's current lending criteria.

betmunch

Why would the next lender pay the ERCs? No matter, I'm just curious.


If you have a portable mortgage and you meet the criteria then what did they say was the reason you couldn't port it?


If you have an AIP with another lender then looks like your taking the pay the ERC option

Tightscotsman

Landofwood wrote: »

You don't meet Natwest's current lending criteria.

On the second occasion I spoke to Natwest, I went through affordability etc (call was 40 mins) and they confirmed all was ok to proceed with a porting application, they asked me if I wanted to be referred to a broker. I meet the lending criteria.

They're saying the mortgage isn't portable now because it was on Homebuy Direct.

betmunch

Tightscotsman wrote: »

On the second occasion I spoke to Natwest, I went through affordability etc (call was 40 mins) and they confirmed all was ok to proceed with a porting application, they asked me if I wanted to be referred to a broker. I meet the lending criteria.

They're saying the mortgage isn't portable now because it was on Homebuy Direct.

That's not a full application, you cant say you meet criteria until you have done a full application. What you have there is meeting the basic criteria.


Of the full criteria it would appear that part of the full criteria is affected by the homebuy direct scheme, so you do not meet criteria because of that.


To be fair I'm not convinced, I don't think we are getting the full story here, I think there is more to it and NatWest haven't explained it well to you.


I could be wrong, but either way it would appear they are not going to port your mortgage. This leaves your options as pay your ERC and move with a different lender, or don't move.

Jhoney_2

Tightscotsman wrote: »

I have a mortgage with Natwest on the Homebuy Direct shared Equity scheme.

I asked them a few weeks ago if my mortgage was portable as I'm within a fixed rate deal - they said yes.

I then sold my house and reserved a plot for a new house and they are now saying it's not portable! All my paperwork (original deal and subsequents) say it's portable and mention nothing on Homebuy direct mortgages being not able to port.

I've ended up with £2700 early redemption charges, what can I do?

Too late for that...

Tightscotsman

betmunch wrote: »

That's not a full application, you cant say you meet criteria until you have done a full application. What you have there is meeting the basic criteria.


Of the full criteria it would appear that part of the full criteria is affected by the homebuy direct scheme, so you do not meet criteria because of that.


To be fair I'm not convinced, I don't think we are getting the full story here, I think there is more to it and NatWest haven't explained it well to you.


I could be wrong, but either way it would appear they are not going to port your mortgage. This leaves your options as pay your ERC and move with a different lender, or don't move.

This year Natwest changed section 10 of their mortgage terms and conditions to state:

MI NEW HOME
if your original mortgage product was a MI new home scheme this mortgage is not portable.

New Buy
if your original mortgage product was a New Buy new home scheme this mortgage is not portable.

Help To Buy Shared Equity
if your original mortgage product was a help to buy new home scheme this mortgage is not portable.


This wasn't in the terms in my previous two deals and it shows that they have an issue with porting these type mortgages as its become more popular as people move from scheme to scheme.

My complaint here is that Homebuy direct has never been in the terms as not portable.

You're right in that I haven't had an application under written, that's because they won't process a port application for me after they've twice confirmed they intended to.

I wouldn't have sold my house and spent money reserving a new one if they hadn't told me that the ERCs wouldn't apply. They've put me in this position, surely they are accountable?

I've offered to take another mortgage with them and do anything to indemnify the charges.

Thrugelmir

Tightscotsman wrote: »

My complaint here is that Homebuy direct has never been in the terms as not portable.

The equity loan has to be repaid when the property is sold. That's a condition of the scheme itself. Which in itself means that the mortgage is not portable per se.

Has your property increased in valued since you purchased it?

ACG

If your unhappy and think they are in the wrong, make a complaint to them.