Can't port a portable mortgage?

MissCellaneous

Hi,

I was wondering if anyone has had any experience with this?

Our current mortgage was originally with Britannia, and it was technically a variable 'share to buy' rate though we did not actually 'share to buy'. Now, they are the Co-operative, of course.

Last year, not realising we would want to move this year, we switched to a 5 year fixed, much better rate.

So, now that we need to upsize, to get away from our current mortgage would incur a sizeable early repayment charge.

So, we got in touch with the Co-operative to discuss porting our existing mortgage, which would avoid paying the ERC.

Initially, they were talking me through this toward an Agreement in Priciple, until the representative on the phone stopped and realised my mortgage 'wasn't portable'. I told him I was sure it was, but he said my terms hadn't changed since we took out the initial mortgage, and that they didn't do the product any more, and that it couldn't be ported. He didn't suggest that this was anything to do with affordability, and continued to give me an AIP for a 'new' mortgage.

My husband rang back later, and he was simply told that 'it will have been in the terms we originally signed'.

Now, I've gone back and looked at current product switch terms, plus our original terms, and both proclaim the product to be portable, with specific terms, which all look good to me.

All I've been unable to find is Britannia's 'general lending terms' that are referenced, I believe this will have been a standard booklet, but I can't locate it, and can't locate anything online either.

So, all my *specific* terms say portable, and none of the conditions look to be a problem. So I'm lost I can't contest it with them yet as they're not open until tomorrow, now. My mortgage advisor from an estate agent has told us to request this info in writing, as it doesn't sound right to him. Due to our ERC he seems to have our best interests at heart and is encouraging us to stay with our current lender if we can.

Has this happened to anyone, or might anyone have any insight into this problem?

Thanks a lot!

glosoli

Not familiar at all with Share to Buy, I am guessing the five year product you took out last year was not just a regular on sale product, which overrules the earlier terms and conditions? Or did the mortgage continue to be a Share to Buy mortgage even after the product switch?

Nonetheless, if you don't seem to be getting anywhere, I would be doing two things:

1) Initiating a complaints process (which may take up to eight weeks to get a final response letter). If they do not allow you to port it still, then refer it to the Ombudsman, with specific reference to your original and current offer document which states your mortgage product is portable, and the early repayment charges applicable if you were to redeem the mortgage in full.

2) Initiate a separate process with another lender, on the presumption that the above actions will fail, so that you have a fall-back option if worst comes to worst.

ACG

Why would you be on the original terms if you switched products last year? Surely you would be on the new terms?

You would have had a Mortgage illustration which would confirm if portable or not. I think you need to get all of the evidence you have - ie what the document is and what section relate to it being portable and then call them first thing tomorrow.

Thrugelmir

MissCellaneous wrote: »

All I've been unable to find is Britannia's 'general lending terms' that are referenced, I believe this will have been a standard booklet, but I can't locate it, and can't locate anything online either.

Britannia doesn't exist any longer. New business will be written under the Co-Op's name. The Co-Op will be simply running down the old mortgage book.

MissCellaneous

Thanks all! It *is* portable, I rang today with all the evidence and a nice guy called Sal went off and investigated before calling me back. It's a system fault/confusion, it applied rules from the older product, which was portable (no ERC though anyway) but which must have issues because they were 'running the book down' as you say, but got confused between the original product and the one I switched to - which is portable, and is a standard fixed product. Which is a good job, because the new product has a hefty ERC. Classic 'computer says no' moment apparently. Took three calls - but now there's notes on the account etc so we're good to go.