Mortgage help

Curiositymoney

Hello,

Quick summary:

Trust Deed in 2006, completed in 2009.

Had mortgage arrears 4 years ago as I couldn't take a payment break and had to get boiler fixed, bank said only way would be to miss the payments for two months and set up payment plan for arrears.

Negotiated a new fixed rate 2 years ago for a 5 year period, made the bank aware that I was looking to move before that but they said they could port mortgage anyway.

Have an RBS Mortgage which is at 60% LTV and went to them looking to take £10k on it to get done up a bit which would take LTV to 70%.

They have declined it due to the trust deed, and will not lend more. Bear in mind I always made additional payments as I though that would demonstrate my ability to pay etc and to bring outstanding amount down. They have always been aware of it and it has dropped off my report and they said they had no records of it previously. It came up as the question was "have you ever had" as opposed to "in the past 6 years". I answered yes obviously, as I've nothing to hide and in any instance they were told before about it.

My question is if they knew I was looking to move and that would involve borrowing more should they not have advised they wouldn't when I went into another fixed rate with them?

Also I'm suspecting that I really need to look at getting another mortgage provider as I would be looking to move in the next year, albeit I would need to bite the bullet and pay the penalty for breaking the fixed rate.

David_White

There's no guarantees that you can port a mortgage in the future as you'll be subject to the criteria on the day. No mortgage adviser would tell you with certainty that you'd be agreed in the future as it's impossible to say.

If you're considering a complaint then it may come down to whether you were given advice or not. I know for a fact that in RBS branches they used to only offer a non-advised service if you saw someone face-to-face.

If you specifically said you wanted to move in the short term and they recommended a 5 year fix then there's a case for bad advice, however it would be hard to prove this conversation happened and it would be easy for everyone to claim this to be the case when wanting to break a fixed rate.

Based on the above info you should be able to find a new lender, however as you mention there would be an early repayment charge.