Halifax definition of a 'new build' property

lottie-cat

betmunch wrote: »

When the move was discussed, did you tell them it would be to a new build?


They always say calls may be recorded for training and whatnot, you better hope this one was.

No because I didn't know we would be purchasing a new build but I did say I wanted a mortgage without any restrictions. By selling me this product they have limited what I'm able to buy. Their definition of what constitutes a 'new build' has complicated the situation. I'm sure most people don't know that if the property has been vacated for renovation it is classified as a new build!

MEM62

The lender will probably argue that the mortgage is portable but that the property you are looking to buy, as a new build, requires a larger deposit. If you had the deposit you could port the mortgage so where is the restriction?

swindiff

The restriction is, it requires a larger deposit. Do some people come on these forums just to be awkward.

MEM62

swindiff wrote: »

The restriction is, it requires a larger deposit. Do some people come on these forums just to be awkward.

I am sorry, I thought this was a discussion board and I am having a discussion.

I am exploring a potential response from the lender and it is a case that they might put forward. They could also make a similar case if the OP asked them to port the mortgage say to a building of non-standard construction - many of which you would not get a mortgage on. Would they port to that? - of course not. So this supposedly restriction-free porting is not free of restrictions. It is perfectly possible that the lender will want to separate the subjects to justify their position, particularly if the OP was ill informed in their verbal exchanges.

Thrugelmir

lottie-cat wrote: »

No because I didn't know we would be purchasing a new build but I did say I wanted a mortgage without any restrictions. By selling me this product they have limited what I'm able to buy. Their definition of what constitutes a 'new build' has complicated the situation. I'm sure most people don't know that if the property has been vacated for renovation it is classified as a new build!

The problem you face is that lending terms can be varied at any time. The information you receive verbally could be correct today but not tomorrow. As with anything contractual. What matters is the wording in the paperwork that the lender offers and that you accept.

amnblog

You have nothing to lose Lottie, and they may waive the early redemption fee rather than risk a complaint.

That still leaves you having to find a lender for the purchase of course.

lottie-cat

Thanks everyone. I've double checked my paperwork and its in black & white that I intended to sell my property in 3 months time. I've logged my complaint and will let you know the outcome. I really appreciate the time you've taken to comment.

betmunch

lottie-cat wrote: »

Thanks everyone. I've double checked my paperwork and its in black & white that I intended to sell my property in 3 months time. I've logged my complaint and will let you know the outcome. I really appreciate the time you've taken to comment.

This is going to be an interesting case please keep the thread updated.

If they weren't told you would be looking at a new build then the mortgage is fully portable as far as they are concerned, ie there's no restrictions on you that wouldn't apply to anyone else.

However, your assumption that fully portable would mean to any house is understandable, albeit incorrect. I would argue they should have explained "fully portable" better.

If I was putting a bet on I would put it on the ombudsman/complaints team to side with the lender. However, I wouldn't think it's a safe bet!

kingstreet

This is another example of lender inability to explain portability correctly.

Novices on here who do not work in financial services know there is no guarantee of a new mortgage and you have to meet lender criteria, status and affordability requirements.

It's pathetic.

lottie-cat

Apologies that this has taken so long to reply to but I didn't want any posts jeopardising my situation with the Halifax.

After an EXTREMELY quick investigation, Halifax agreed that the mortgage was not suitable for my needs and that I should have been made aware it was not fully portable with the deposit I had.
They were very careful with how they worded the letter and told me they did not agree it was misold. They agreed to terminate the mortgage, with no early redemption fee, gave me £300 compensation and a further £90 for calls made to them. I terminated the mortgage when I moved house. I imagine if I had taken it to the ombudsman I would have had a good case for mis-selling but being 9 months pregnant I was just relieved to have it over and done with.

I hope this helps someone else in a similar situation and thank you for all your advice.