Porting tesco mortgage

GoingonholidayI

We have a tesco mortgage, in the 2nd year of a 5 year fix. We are looking to move, we won't require additional borrowing and will be well within the LTV for the product we are on. If they sell to an inactive lender are we in danger of not being able to move during the fix period?
Thanks

ACG

You need to check with them. It might be also checking what happens if you need any additional borrowing - assuming you will want it.

GoingonholidayI

As per my post, we don't need additional borrowing! Anyway, I already know additional borrowing is not an option if they sell to an inactive lender. The question is whether the sale could go to an owner that could refuse to port?

Thrugelmir

From a PR perspective and given the size and quality of the mortgage book. You'd expect the mortgage book to be sold to an active lender. Rather than one specialising in liquidating legacy ones with a multitude of historic issues contained within.

An active lender would be in a position to underwrite and offer new products to the mortgages transferred. Though perhaps on a different basis to their own existing product range.

Farmerbob

They are still accepting porting applications (and additional borrowing too for anyone else reading), in the same vein as Thugelmir it would be terrible PR for them to continue porting applications only to rescind it or in the case of finding a buyer move to one that can’t fulfil any in flight applications. Where are you in the process selling/buying if you’ve started at all, or when are you aiming to have sold/moved?

GoingonholidayI

We're going onto the market next week so, it could sell before we get a porting app in! I agree the risk is low for an inactive lender, wondered if the new owner had to offer porting as its in the contract I signed! They of course caveat the offer of porting to death!

Farmerbob

I doubt any sale will be too quick however no-ones to know. There’s nothing to say you can’t commence the porting app sooner rather than later, but it obviously hangs on how long your property sale takes and/or time for you to find a new property. I would recommend speaking to them next week about your plans

minimike2

It wouldn't suprise me if it doesn't end up with RBS given the historic connection between the two banks.

Shippers71

We are currently requesting additional borrowing and porting our mortgage and Tesco are being very obstructive. They have given us until 31st July to make our application. But they are making things very difficult for us. We have paid off loans and credit agreements but they are refusing to process our application until our credit file is clear even though we have provided written evidence that the debts are repaid. We Could lose both our sale and purchase. Our financial advisor is on the verge of making a formal complaint on our behalf. It’s almost as if they want us to find another lender and pay a large exit penalty to leave......