Porting mortgage refused

kevnvicb

Nationwide refused to port our mortgage to a new property as they had changed their lending criteria, We had to pay a 12k early redemtion penalty to move the mortgage to Natwest so we could move house in October. We have fought this through the ombudsman but he has decided in favour of nationwide. Is it worth us going to the FSA? We are so cross. we have perfect credit scores, never missed a mtg payment and our income was unchanged. We dont understand why they were happy to continue lending us the money to stay in out house but not lend us exactly the same amount on a new house.

betmunch

You fought to reclaim the ERC? I'm not surprised you lost.


If you didn't want to pay it you didn't have to move.


Just because one lender will give you a mortgage doesn't mean another has to. Porting has never been guaranteed.


Who gave you the expectation that you would get your 12k back?

Thrugelmir

You choose to move. So incurred the ERC. That's a contractual term you agreed to. So have to accept the consequences.

Did you increase your total borrowing as part of the move?

Let_Us_See

kevnvicb wrote: »

Is it worth us going to the FSA?

Now FCA, and no it isn't. The FCA would only refer you back to the FOS.

Personally, I do not think you have a valid claim as you made the decision to move and incur an ERC of £12,000.

kingstreet

kevnvicb wrote: »

We dont understand why they were happy to continue lending us the money to stay in out house but not lend us exactly the same amount on a new house.

Your existing mortgage was a done deal. There was nothing they could do, apart from repossess and for that you would have to have fallen into arrears.

As you required a new mortgage, you were checked as would any new borrower under the Mortgage Market Review rules and for some reason nationwide decided it would not lend to you again.

Contrary to popular belief you can't transfer a mortgage from one property to another. You can transfer a rate from one mortgage to another, if you qualify for the new mortgage. That is porting. There is no guarantee of that new mortgage.

amnblog

In answer to your question. The 'FSA' (FCA) will only point you at the Ombudsman in any case.


From the responses above you can see that your case was weak from the start.

Car1980

We dont understand why they were happy to continue lending us the money to stay in out house but not lend us exactly the same amount on a new house.

I thought there was all that hoo-har about people being refused a product change even though they wouldn't be borrowing a penny more and be saving money on a lower rate?

If you didn't want to borrow a penny more and just wanted to port a portable product I thought they were not supposed to 'over MMR' such a request?

Anyway, it depends on what you put in front of the ombudsman. For the sake of £12k you might as well get some broker advice anyway now about it.

kingstreet

Car1980 wrote: »

I thought there was all that hoo-har about people being refused a product change even though they wouldn't be borrowing a penny more and be saving money on a lower rate?

If you didn't want to borrow a penny more and just wanted to port a portable product I thought they were not supposed to 'over MMR' such a request?

Anyway, it depends on what you put in front of the ombudsman. For the sake of £12k you might as well get some broker advice anyway now about it.

You are confusing the October 26 2012 transitional rules as mandatory when they were voluntary.

So far, few lenders have chosen to adhere to them and the imminent European Mortgage Directive means none are likely to join the likes of Ipswich BS, which may have to cease such business this time next year...