Mortgage Porting Issues

Aoughton

In July of 2018 I purchased an additional property by remortgaging my main home. The intent was to sell my main home and move into the new property at a later date. I remortgaged my main home because I could get a better deal with my local bank. This was a 5 year fixed rate mortgage where the deal could be ported as long as the new property was suitable for porting to. I recently sold (STC) my main home and called the bank to say I wanted to port the mortgage deal to my new property. However, because I'd already bought my new home the mortgage deal couldn't be ported. I said that it didn't say that in the terms and conditions or the mortgage illustration. They said it was company policy. I am now stuck with a large penalty for repaying the mortgage early even though I am forced to.

Thrugelmir

Porting is a transfer of existing terms and conditions to a new property. Not to one that is already owned. That in effect then requires a remortgage. Always if in doubt consult before taking action.

middleclassbutpoor

That is the risk you run- did you take advice?

haras_nosirrah

You can only port a mortgage to a new property you are buying not one you already own. Did you say to the person that this was what you were going to do? I don't think you are going to be able to avoid the erc on this one unless you don't sell the house and apply for consent to let instead until the end of the erc period although that may also have implications especially if you are getting a refund of the second stamp duty charge

haras_nosirrah

Another option is to move back into home 1, cancel the sale and rent out home 2. I guess it depends why you need to move and how much the erc is

ACG

This is pretty common practice.
A port is subject to application and acceptance. They do not have to allow you to port, it is just a feature that it can be.

That being said, if it does not specifically state anywhere that it can not be ported to an existing property, you could put a complaint in, as horas is probably alluding to, if you told them on a recorded call that was also your plan then you may be able to use that to back up your argument.

However, all of that will take a month or 2 at best.

haras_nosirrah

If you said to the person 'this is my plan and mentioned that you would buy a house for cash and move the mortgage to that house you already own when this house sells and they said you could do that then I would expect a complaint to succeed.

If you said I want to remortgage this house and is it a portable mortgage then I would expect a complaint to fail

I say this assuming you went direct to the bank rather than via a broker. I would expect a broker to drill down info about future plans and that this would have come out even if not volunteered so would have been prevented. The banks not so much