Fee to leave a mortgage

fudge7000

I took a 5 year fix with Santander a couple of years ago, at the time I told the mortgage advisor that I would likely be moving house in the next 2-3 years, she said this wasn't a problem and the mortgage could be ported without paying a fee.

We have been looking over the past year for a specific type of property, so ours hasn't been up for sale as had we not found what we wanted we wuldn't have moved.
Now we've found a property and had our offer accepted, so ours is going up for sale. The vendors want a quick sale which we've agreed to.

What we owe on the old mortgage and what we need for the new one added together is less than the maximum amount they will lend us. Our old and new LTV is less than 60%.

So didn't think there'd be a problem, we need both mortgages temporarily, then pay old one off. Santander have now said that both things need to occur on the same day to avoid the £7k fee for leaving the mortgage early. This was never stated to me when I took the mortgage out, however I never specifically asked that question.

Now moving to another company will save me a few k over the next 5 years as the rates are better, but the cheapest option is Santander without the fee.

I think it's a bit unfair that they won't waive the fee seeing as I'm taking out another mortgage with them... My question is, is it worth speaking to someone higher up to see if it can be waived or is it tough luck, I should give up and go with HSBC instead and cut my losses...?

I hope I've put all the info on, feel free to ask me anything to clarify!

Thanks for any help

somethingcorporate

Can you port the mortgage and get a new one/temporary bridging finance on the old house?

Probably worth seeking the help of a mortgage broker.

ACG

Have a read of section 10 on your mortgage offer. What does it say about if you want to move property?

You can always submit a complaint but it can take up to 9 weeks to get a final response (I imagine it will be quicker than that though).

fudge7000

The website won't let me insert a picture (or I just don't understand how to!)

Essentially the original information stated that you can port as long as you complete on your new mortgage within 3 months of you sell your property first, prior to buying another one.

No mention of the other way round, I assumed this wouldn't be a problem, as I'm borrowing more overall, and significantly more for a few months until mine is sold. There is no mention at all of this situation in the mortgage information, I can't imagine it's an unusual occurrence?

Trying_to_be_good

The problem is you're not asking to port your mortgage - you're asking for a second mortgage before you've redeemed the original mortgage and therefore before the deal is 'available' to be moved to the new property.

As has been suggested, if you can get new finance on your current house, thus redeeming the mortgage and enabling the deal to be ported to the new property, you'll avoid the early repayment charge.

JimmyTheWig

fudge7000 wrote: »

The website won't let me insert a picture (or I just don't understand how to!)

Essentially the original information stated that you can port as long as you complete on your new mortgage within 3 months of you sell your property first, prior to buying another one.

I believe that's standard. No need for a picture I wouldn't have thought.

No mention of the other way round, I assumed this wouldn't be a problem, as I'm borrowing more overall, and significantly more for a few months until mine is sold. There is no mention at all of this situation in the mortgage information, I can't imagine it's an unusual occurrence?

I would say that's unusual. Most people can't afford two mortgages at once.

fudge7000

I'd taken a picture of the wording of the mortgage contract, that's why i'd tried to insert a picture.

Thanks for the advice, I'd not thought of getting new finance on the old house so that it did match up, may be the only option.

And I can't afford 2 mortgages, but the banks all seem to be saying they would lend me that amount, personally I think it's crazy and wouldn't want that level of mortgage, but temporarily it's affordable!

fudge7000

I've spoke to Santander again, they are now saying that I can't port to the new house without actually physically selling the old property, even if other finance was an option...

Stupid question, how could they tell whether I'd actually sold the house or not?

mrginge

fudge7000 wrote: »

Stupid question, how could they tell whether I'd actually sold the house or not?

Erm...how is someone going to buy the house without Santander releasing their charge on the property?

Thrugelmir

fudge7000 wrote: »

And I can't afford 2 mortgages, but the banks all seem to be saying they would lend me that amount, personally I think it's crazy and wouldn't want that level of mortgage, but temporarily it's affordable!

Then your application would be declined. The banks haven't said anything. You are making assumptions. Not least if that your current property doesn't sell then you've a problem. Bridging finance is available but it's expensive for this very reason.

fudge7000

mrginge - I'm talking about taking another loan to pay off the mortgage at the same time as buying the new house, so I can still port the mortgage, so the house wouldn't be sold at the time I paid off the first mortgage.

Thrugelmir - nope, they've done all the affordability checks, and I can see that it would be affordable (cost would be <1/3 monthly income), I just don't want that level of debt.

I've had a look at the bridging loans... I think we're better off paying the fee to santander!