Northern Rock - porting product problems

silvercar

Portable mortgages can be ported if and only if you meet the lending criteria for the new property.

So if your lender is now only prepared to lend 3 x your salary and maximum LTV of 80%, then that is what they will lend you on the new property. If this is less than your current mortgage you need to be in a position to find the difference. If this means that you can't do the move you want then you cannot do it. If you can or your new mortgage application meets the current lendling criteria then you can port it.

Kez100

DaiJoA wrote: »

One of the reasons why I'm so angry is because our house is on the market already and so we've wasted £300 on our HIP, for a start! Another reason being that if the most mortgage we'll ever get is £110,000, we'll only be able to get out of here in about ten years time, meaning our son won't be able to go to the primary school we want him to go to. We took a 5yr fixed because they would only give £127,000 for a 2yr fixed deal.

I also feel we were badly advised by the IFA we used at the time - at no point did he ever mention anything like this could happen - also, they are meant to be independent, and yet everyone I know who went to them got offered a northern rock mortgage.

I completely understand them wanting to tighten things for new customers, but to treat existing customers like this is really bad - they were more than happy to lend us loads when the going was good, now they've over-extended themselves and are nearly at the point of ruin, all the people that can't leave are stabbed in the back. Yes, I know its business but these are people's lives here!

We have discussed renting where we want to go to but my husband is 37 and so we wouldn't be able to get another 25/30 year term, plus I'm only working part time because of the baby. Also a big part of me thinks why should we have to come off the ladder when we've worked so hard to get on it?

It really does stink in my opinion :mad::mad::mad:

Look, I've been in this position. Slightly different reasons but basically we had to find the cash (in the thousands) to move. That was in 1994. It's happened before. It's not NR problem - it's yours, because the market has changed. Better to face it than feel angry at every third party you can think of. We saved ourselves out of it - I still can't eat tomato pasta because I became so sick of it while saving but we did and we moved. Put your energy into positive action.

MarkyMarkD

sassybooboos wrote: »

i recently tried to port my mortgage with bm and they also said no.and declined us for a mortgage point blank but wouldnt specify why. we have now had to pay them a £7500 redemption penalty as we needed to move.

strange that halifax who are in the same group gave us our mortgage and we move next week.

i feel as though we have been conned out of £7500.

Each lender has its own underwriting criteria. Just because another lender in the same group will lend you money, doesn't mean that you've been conned.

Would you somehow feel better if a completely unrelated lender had lent you the money? If so, why on earth?

I keep on, and on, posting that people should NOT tie themselves into products for longer than they realistically expect to be in the property, because porting is in no way guaranteed.

poppy10_2

DaiJoA wrote: »

what I dont understand is why its ok for us to have a mortgage on this house, but not one three miles down the road.

NR were happy to give you a mortgage 2 years ago; now they are not. They are trying to get rid of their riskiest customers (i.e. the kind who borrowed 100% and have paid off only £3k in 2 years) They would get rid of your current mortgage if they could, they certainly won't want to offer you a new deal.

vickyh_2

thanks Silvercar
I understand what you are saying and as I'm downsizing and will have 70-75%LTV I might be alright (I have 80% on my current mortgage). Anyway, I haven't got a buyer yet, so this is all abit accademic!
Thanks
Vicky