Moving house mortgage hell

Bondy85

Ok so we got a mortgage just over a year ago for the amount of £149000. A year on we've never missed a payment or any other payment but as we're soon to be getting married wevgot a credit card which has been used to make a few big purchases but otherwise no further debt. Salaries have stayed the same etc but I've been given the opportunity to move jobs so that I can go back home and live where I've always wanted to live........the issue is we were originally misled with the concept of porting our mortgage and thought it was just fully transferable- the reality is, it's not and we effectively have to apply for a new mortgage again. Having obtained an AIP we've been terrified to discover what they're now willing to lend is significantly lower than what we've already got so we just have no idea how we're going to be able to move. Our hands are tied and we've got no way of making up the difference. It is mental because we already have this one mortgage in place whereby they've lent well above what they're now offering and when we sell we'll definitely be making on the house. How do we move forward? I feel like our hands are tied and I'm meant to be starting my new job soon. Please please please any advice at all would be greatly appreciated xx

kinger101

How much is your redemption penalty? Bearing in mind it would take at least another 3 months to find a buyer and complete. You might have to take the hit, then see if you can find another lender with a higher lending multiple.

xylophone

Might you consider selling the house, holding the proceeds after repaying the mortgage on deposit, renting a property in your desired location (while continuing to save as much as you possibly can) and applying for a mortgage from a lender with higher multiples after a year in the new job?

Bondy85

Hi xylophone many thanks for your response - that's certainly something we considered but unfortunately as we own 2 dogs there seem to be none willing to rent to us, we are just at a loss to know what to do and find it ridiculous as we're already evidencing we can afford a bigger mortgage. - kinger101 our early repayment fees would be about £4500 but if we sold before buying we'd effectively be homeless unfortunately

glosoli

Have you organised an appiintment to speak to an advisor yet? The results of an AIP aren't neccessarily your cap on borrowing.

glasgowdan

If you're now making significant CC repayments then yes, they'll lend you less, along with possible policy changes. Isn't buying a cheaper house an option?

Pixie5740

Misled by whom? When you port a mortgage all you are actually porting is the rate.

I can see how having more debt (the credit card) and starting new jobs in a different area could impact the amount you can borrow. Have you spoken with any brokers to see if any lender would be willing to give you a large enough mortgage with your current debts whilst starting a new job(s)?

So it looks like your options are:

a) stay put

b) sell and take the hit with the ERC

c) stay put but lodge in the new area Mon-Fri so you can take the new job

d) request consent-to-let so let out your current home and rent somewhere in the new area although I can see you have already dismissed this idea.

Bondy85

Misled by the bank themselves, during consultation I asked about the porting functionality and as that person explained it to me they suggested that the mortgage current equity ratio and original mortgage as a whole would just "move across" to the new property when clearly this isn't the case and it'll essentially be a new application. Obviously we've considered a cheaper property but it would have to be considerably cheaper. I think our only option would be to have a proper sit down with the bank and discuss how we can move forward. They or just find some way of getting out of the chain and clearing the credit card debt - all seems a bit out of reach at the moment however and is stressful beyond belief!

cooltt

Bondy85 wrote: »

Misled by the bank themselves, during consultation I asked about the porting functionality and as that person explained it to me they suggested that the mortgage current equity ratio and original mortgage as a whole would just "move across" to the new property when clearly this isn't the case and it'll essentially be a new application. Obviously we've considered a cheaper property but it would have to be considerably cheaper. I think our only option would be to have a proper sit down with the bank and discuss how we can move forward. They or just find some way of getting out of the chain and clearing the credit card debt - all seems a bit out of reach at the moment however and is stressful beyond belief!

I think you've misunderstood what the process of porting a mortgage involves.

Obviously any lender would be absolutely foolish to simply assume your financial circumstances now are exactly the same as when the mortgage was approved And even if they were, Porting involves another credit check, it's standard practice.

Lenders can change the rules whenever they feel like it, it's their money. Now you don't meet the lending criteria for the amount you want its as simple as that.

The only option open to you is (as has been suggested) you go speak to someone in authority at the bank, explain the situation and hope they can bend the rules based on your good standing with them. If they ask that you pay the credit card balance and close it then do it, it's not unusual for them to attach strings to grant you request.

hazyjo

cooltt wrote: »

I think you've misunderstood what the process of porting a mortgage involves.

Obviously any lender would be absolutely foolish to simply assume your financial circumstances now are exactly the same as when the mortgage was approved And even if they were, Porting involves another credit check, it's standard practice.

Lenders can change the rules whenever they feel like it, it's their money. Now you don't meet the lending criteria for the amount you want its as simple as that.

The only option open to you is (as has been suggested) you go speak to someone in authority at the bank, explain the situation and hope they can bend the rules based on your good standing with them. If they ask that you pay the credit card balance and close it then do it, it's not unusual for them to attach strings to grant you request.

Exactly - plus it depends on what house you want to buy. It's as much (if not more) their risk as yours. They're lending the money! They can still refuse to lend on whatever house you want to buy - porting a mortgage doesn't mean you buy a house, then transfer it to any house you want without them having to do a new application. Definitely think either you misunderstood, or they only clarified what they thought you were asking and wrongly presumed you knew that it would depend on what you were buying.


Think of it through their eyes - they lend you money, and yes you pay it off but take on debt. It's purely semantics as to what that money was used for, the fact is it indicates you couldn't live within your means. Debt (and its presumed interest/charges) always substantially reduces what they will lend you - unless maybe you have been considerably overpaying the mortgage, or have had significant pay rises.


Jx

xylophone

unfortunately as we own 2 dogs there seem to be none willing to rent to us,

Have you typed renting with dogs in (your chosen area) into Google to see if anything useful comes up?

Example

http://www.petfriendlyrentals.co.uk/about.html