Do Ported mortgages and new products put me at at disadvantage?

Andrew_Waugh

Hello,

We have recently moved and ported a mortgage and added a new product to top up the difference. I can only see this puts me at a disadvantage and plays into my lenders hand. Firstly because they can charge two product fees when I renew at different time. And then if I let one run over at the end of the fixed term until I can renew both at the same time my rate goes up on that part for a year.

Does anyone have any advice on the best way or any tricks to avoid being penalised? And why are the banks allowed to get away with this?

sammyjammy

The banks aren't getting away with anything in this matter, they allowed you to port your mortgage, unfortunately for you, you needed additional lending and therefore you have two products, perhaps when you took the second you should have made an effort to chose one that would end around the same time as your existing product.

amnblog

I am not sure what the Bank is 'getting away with'.

You took an offer product for an agreed term with a product fee and a penalty if you exited earlier.

You decided to port rather than exit and agreed another product on the extra on similar terms.

When the first product ends you have the option to wait on standard variable rate until the second product ends to then put the whole lot onto a new rate or remortgage elsewhere without penalty.

Fortunately in our market, terms are laid out in writing for the borrower to accept or reject.

minimike2

Would you have preferred to pay the early repayment charges applicable to the existing product when you moved in order to get the whole new mortgage on a new product? How much was the ERC?

Thrugelmir

Andrew_Waugh wrote: »

Does anyone have any advice on the best way or any tricks to avoid being penalised?

Yes, plan and time your move more carefully next time. Everything was your choice to do. There's no one to blame.