Porting a mortgage in a fixed rate issues

lemming64

Obviously would like to move before the stamp duty goes back up, would like to upgrade to a bigger place. Mortgage provider is now Halifax after being sold by Tesco Bank. Would like to avoid the exit fee so enquired with Halifax what they could lend, new offer was only 40k more than current lending, which is approx 3.25x combined gross income was hoping for at least 4x which I reckon I could get on a whole market search, and a 20% deposit.

Pretty miffed, any thoughts or recourse available? Or do I just need to suck it up and pay the exit fee (which is less than the likely stamp duty saving if we move before current reduction ends)

TrickyDicky101

If unable to demonstrate suitable affordability to the Halifax to get them to lend you more then you suck it up.

lemming64

That's the thing, they hardly asked any questions to work out their affordability. We can afford to pay a lot more per month than the offer amount would have cost. 

Thrugelmir

lemming64 said:

That's the thing, they hardly asked any questions to work out their affordability. We can afford to pay a lot more per month than the offer amount would have cost. 

How a lender views affordability and a borrower does often differs widely. 

hgem

Hi

Grateful if anyone has any thoughts on this please:

we have a mortgage with the nationwide with a porting feature. We’ve just received an offer on our house, the buyers want to be before
December (which is not unreasonable given it’s July and they have nothing to sell). The property we want is a new build, It’s ready in June at the earliest. We’d be prepared to move into rented. The nationwide say that there can be no more than 6 months between completion on our sale and completion on our purchase and if there is, early redemption fees of tens of thousands fall due.  Looking at the time scales realistically, there’s likely to be a bit more than 6 months, and if there’s a second lockdown or building delay, it could be more. Our mortgage advisor tells us there’s no wriggle room on the 6 months, but this seems massively unreasonable from the nationwide, particularly when all efforts are being made to stimulate the housing market in the current climate, and we could just be talking a few extra months. We’d be prepared to pay some interest in anything over 6 months. 

anyone have any ideas about how we might complete on burg without paying huge early repayment fees? 

silvercar

hgem said:

Hi

Grateful if anyone has any thoughts on this please:

we have a mortgage with the nationwide with a porting feature. We’ve just received an offer on our house, the buyers want to be before
December (which is not unreasonable given it’s July and they have nothing to sell). The property we want is a new build, It’s ready in June at the earliest. We’d be prepared to move into rented. The nationwide say that there can be no more than 6 months between completion on our sale and completion on our purchase and if there is, early redemption fees of tens of thousands fall due.  Looking at the time scales realistically, there’s likely to be a bit more than 6 months, and if there’s a second lockdown or building delay, it could be more. Our mortgage advisor tells us there’s no wriggle room on the 6 months, but this seems massively unreasonable from the nationwide, particularly when all efforts are being made to stimulate the housing market in the current climate, and we could just be talking a few extra months. We’d be prepared to pay some interest in anything over 6 months. 

anyone have any ideas about how we might complete on burg without paying huge early repayment fees? 

I don't think you have many options to this problem. If you are confident your house will sell quickly, you could let these buyers go and find new buyers next Spring. 

hgem

silvercar said:

I don't think you have many options to this problem. If you are confident your house will sell quickly, you could let these buyers go and find new buyers next Spring. 

Thanks! The problem is, because we are buying new build, we can’t proceed until we are sold subject to contract on ours. So if we let these buyers go we would likely lose the house we want to buy. Surely no downside to the lender if we are committed to a new property - seems OTT to have to pay early redemption if house is delayed due to eg a second / local lockdown?

davidmcn

They need to draw the line somewhere, they've drawn it at 6 months (which is longer than some other lenders would allow). 

kingstreet

If you sell, you pay the ERC when the mortgage is repaid by your solicitor. The six month period concerns the refund of the ERC you have paid.