Porting a mortgage to a different property

whazleyp · 7 June 2018 at 8:59PM

Can anyone help?

We have an interest only mortgage taken out many years ago, before the 2014 stricter rules came in, on our marital home. We've never missed a payment, have a good credit history and there are no early redemption fees payable.

We are now sadly divorcing. Has anyone had experience of a spouse (or ex-spouse) porting a mortgage to a different property owned solely by the one spouse? (without needing a full affordability assessment and new fees?) This would really help in our settlement. I'm not sure whether the original mortgage was assessed completely on my ex's earnings, or on both of our earnings but can check. Would this make a difference?

If the lender objects, can we take this to the FCA/Ombudsman? I've heard lenders are going above and beyond the guidelines by insisting on a full affordability assessment etc, which the FCA suggest is unnecessary. I've also read that the FCA have just written an interim report on this. It would greatly help in speeding up our financial settlement so any experienced views on this greatly appreciated. I'm waiting to speak with our broker about it, if they call back..

Many thanks.

Thrugelmir · 7 June 2018 at 9:07PM

A new mortgage application is subject to current criteria. Much of this is regulatory and has been set by the FCA. Objecting is fruitless. You've had many years (of low interest rates) to address repayment. The fact that it's not to your personal liking now is irrelevant. Likewise lenders are currently tightening internal criteria due to their own commercial view of the wider economy.