Stuck with a mortgage?

Confusion1

This may well have been answered before but any advice would be welcome. 

I have a mortgage currently with Sainsburys that as of 2019 have ceased lending.

I am 2 years into a 5 year mortgage and now with a growing family would like to move into a bigger and inevitably more expensive home. I have just spoken to Sainsbury’s that state my only options are redeem the mortgage with charges/fee which would amount to around £5000 and seek a mortgage elsewhere or seek a loan. The issue I have is that I can ill afford to lose £5000 and feel punished by Sainsburys that are no longer lending, a loan option will undoubtedly be more expensive and difficult to achieve.

 

Is there anyone able to clarify my current position... Surely this must have been challenged at some point... 

davidmcn

"Challenge" it on what basis? It should have been made clear to you that it's a 5 year deal with penalties for redeeming it early. Unfortunately it's never a wise choice to pick a minimum term which goes beyond whenever you think your circumstances will next change.

Even if Sainsbury's were still lending there's no guarantee that they'd be prepared to give you a mortgage over your preferred next property.

foxy-stoat

So 2 years ago you would of been given a keyfacts statement along with the mortgage offer and agreement.  This would of stated the early repayment charges on this.

Your not really stuck in a mortgage as you can leave, it will just cost you £5K at the moment.  It may reduce after each year, have you checked the paperwork yet?

RelievedSheff

Why do you feel punished?

You chose to take out a five year fixed rate deal.

Confusion1

Maybe this was unclear - I have a mortgage with sainsbury who no longer provide additional borrowing. If they did I would go with then obviously but because I cannot do this my only option is to repay the fees. The fact that the sainsbury has stopped lending is now punishing me in fees? 

Jamaicanmelaff

I don't think it's unclear at all tbh, I think it's just that people don't agree with your analysis of it as you being punished.

foxy-stoat

So don't get punished - stay where you are until your fix is up.

ACG

Your not being punished as such (although I can see your point). Sainsburys are honouring what you agreed. You now want to move house and port the mortgage which was and is still possible.

The additional borrowing would have been available subject to whatever products are available at the time, which is none. 
You chose a 5 year fixed rate with a lender that has no history of good or bad times, you have no idea how they would treat customers. All of this plays into recommendations especially when it is a first home or a longer term tie in (ie 5 years +).

You are not being punished as you can stick to your contract without incurring any costs, you can also port the mortgage and get the additional borrowing from elsewhere. But what you cant do is get something that was never part of the agreement. 

dimbo61

So what has changed in the last 2 years ?
Two extra children ?
Why not stay where you are and overpay like mad.
If you were to move to a bigger property with a bigger mortgage you would then have to pay X amount extra each month.
So say you overpay by £500 a month you would have £20,000 less debt in 3 years with overpayments and Interest paid.
When applying for the new bigger mortgage you could prove you have been paying more than that each and every month for 3 years.
Affordability !
Unless your stuck in a one bed flat with 3 kids I am sure you can manage.

Confusion1

Yes we now have 2 extra mouths to feed and looking for additional borrowing of £150000 - which as far I know you cannot get from another mortgage firm.
I've been overpaying got the last 15months by £500 so can easily afford it, the issue is that they no longer lend. If I can borrow elsewhere it won't be an issue..