Porting Mortgage Promise broken

StanKubrick2001

We moved house last year and were told that we would have to get a new mortgage with the same bank we already had one with. During the application we were told that after a year, we would be able to port the two mortgages. A year later we are now being told we can't leave the new mortgage unless we pay an early cancellation fee. Obviously, we don't have that money after doing work on the new house all year. We've also been told we can't get the old mortgage to run until the new one is up for renewal. The only choices we have are to cancel both, pay a lot of cancelation fees and apply for a new mortgage OR to leave the one that's renewing now (the old one) on a variable rate for 15 months and attempt to port them then. Have i been mis-sold?

SonOf

A year later we are now being told we can't leave the new mortgage unless we pay an early cancellation fee.

Just making sure that there is no terminology misunderstanding here as your post is a little unclear.....

Porting is a term that applies when moving a mortgage from one property to another whilst retaining the existing terms.

It sounds like the original mortgage was ported and you took out a new segment on a different deal. It is quite normal to have segments on different deals. The problem is that the deals will expire at different times.

Have i been mis-sold?

If you were told one thing and it was a lie then it is a missale. However, it could also be a misunderstanding or something lost in translation. For example, you wrote " we were told that after a year, we would be able to port the two mortgages." Well, that is correct. However, it isn't what you appear to want. So, did you get a correct answer to an incorrect question by mixing up porting with buying a new deal or remortgaging?

StanKubrick2001

Sorry, i should have been clearer. We are still paying the mortgage on our old home separately to the new home. Sub 1 and Sub 2 i believe the terminology is. Both with the same bank but different rates. We were told that after a year our mortgage on 'sub 1'would be up for renewal and we would then be able to combine the two into one deal/one rate. We wasn't told about having to pay early repayment charges. I hope that makes more sense.

penners324

Porting is transferring your mortgage(s) to a new property whilst keeping the same terms.

Is this what you're trying to do?

Sounds like you want to remortgage early, which is very unlikely. You can remortgage/ product transfer the segment that's finishing though.

Caz3121

StanKubrick2001 wrote: »

Sorry, i should have been clearer. We are still paying the mortgage on our old home separately to the new home. Sub 1 and Sub 2 i believe the terminology is. Both with the same bank but different rates. We were told that after a year our mortgage on 'sub 1'would be up for renewal and we would then be able to combine the two into one deal/one rate. We wasn't told about having to pay early repayment charges. I hope that makes more sense.

have you kept the old home? or do you mean you ported the mortgage from old property to new property last year. If you are looking to port again, do you mean you are moving house again?
If your "old home" mortgage no longer has an early repayment then you can move that to a new deal

StanKubrick2001

No, we've sold our old home

StanKubrick2001

we sold our old home and are not looking to buy a new home. We've only been in this new property a year and have no reason to leave any time soon

[Deleted User]

I assume what you did was:

Sold your own home with a mortgage on it 'A'
Transferred mortgage A to a new property and took out more borrowing to make up the purchase price on mortgage B.

Mortgage A has come up for renewal and you want to combine A+B to make a single mortgage?

It is a very common situation with porting. You deal with this as you had the pleasure of not paying their early repayment charge when you sold the old property.

Usually people will pay the smaller of the ERC's to combine them, or stick mortgage A on a tracker deal with no ERC until Mortgage B comes up for renewal

Sound slike you are getting confused with the terms so you will need to be very clear with what you asked the adviser if you are claiming a mis sale

minimike2

There doesn't sound like any mis-sale here at all.

Your deal is up on part 1. You can get a new deal on that now. OR if you want to have the same deal on part 1 and part 2 then you just need to pay the SVR on part 1 until part 2 deal is out of it's ERC period. OR pay the ERC.

Is there a reason why you need the same deal on both parts? The only I can think of is if its a large loan and any new rate would incur a product fee. If its not worth paying a fee for the amount of lending you have then I wouldn't see what the problem would be.

[Deleted User]

minimike2 wrote: »

There doesn't sound like any mis-sale here at all.

Your deal is up on part 1. You can get a new deal on that now. OR if you want to have the same deal on part 1 and part 2 then you just need to pay the SVR on part 1 until part 2 deal is out of it's ERC period. OR pay the ERC.

Is there a reason why you need the same deal on both parts? The only I can think of is if its a large loan and any new rate would incur a product fee. If its not worth paying a fee for the amount of lending you have then I wouldn't see what the problem would be.

sitting on a base tracker is usually a better option that sitting on SVR. All other points very well made though.

Sounds more like a misunderstanding on your part than a mis sale on the mortgage company

Caz3121

StanKubrick2001 wrote: »

We are still paying the mortgage on our old home

StanKubrick2001 wrote: »

No, we've sold our old home

so you are not paying the mortgage on a home you no longer own. You ported the mortgage from the old home to the new home. (saving ERCs)