Mortgage Change of conditions

CrPorka

So in January our current Mortgage company wanted to offer us three times the amount of money that I required to buy our new house, so this week we’ve successfully sold our current house and have then purchased another new property, to add this is 20k more than our current house. We also have a very healthy amount of equity but this doesn’t seem to help either!

I have a small basic wage and the rest is commission and bonus related. It’s a healthy OTE and then my wife also works part time so between the two of us we do ok. We have zero debts, no car loans not even a store card etc.

Nationwide to whom we are currently with have said they wouldn’t even lend us 2/3 of our current mortgage leaving us a long way off our new house as they no longer take into account bonus and commission.

We have an early redemption fee of £3500 should we find another lender but how is this also fair and TREATING CUSTOMERS FAIRLY? 

Any advice very much appreciated 
Craig

Edi81

January to now is a totally different world.
Your redemption fee is because you signed up for a fixed rate mortgage...if rates had increased would you be willing to pay more each month?

CrPorka

My point is that my current lender has decided they now don’t want to lend me any money yet my financial position hasn’t been affected by CV19. I know what the redemption fee is for.

haras_n0sirrah

It is unfortunate. Have had the same with one of my clients where pre covid they had a mortgage offer with hsbc and were porting. Vendor pulled out on them at exchange and they have found again but hsbc no longer take any additional income into account unless NHS (he is a key worker so no change to income but he works as a delivery driver ) so they are having a pay a 5k penalty.
I am afraid it can only be done via the current rules.
How close are you to the end of your fixed rate? 

davidmcn

CrPorka said:

I know what the redemption fee is for.

As above, it's for repaying your mortgage during the minimum term which applies to the product. It will have been explained in the mortgage offer you agreed to at the time.

SpiderLegs

Presumably OP you didn’t have a formal mortgage offer in January?
If that’s the case then you really have nothing to complain about.

Thrugelmir

CrPorka said:

My point is that my current lender has decided they now don’t want to lend me any money yet my financial position hasn’t been affected by CV19. 

Lenders will be making provision for a widespread impact. Being reavily reliant on commission and bonus is an area where underwriting across the board will be severely curtailed. Until such time as the economy stablishes.