Porting an A&L Mortgage While On A Temp Contract, can they close my account

mystic_bertie

I Have been on a temp contract for 7 week and will be on temp contract for a further 4 weeks and after this i will be put on the books as full time with the comapny. Before this i waqs unemployed for 5 months and kept up my mortgage payments and paid all my bills.

i have put a reserve fee on a new build costing 142,500 and i am due to sign the missives soon, i have a buyer for my house at 132,500, the buyer has not got a buyer for her home yet and so we still have accepted her offer and are keeping my house on the market until the missives are signed.

my current mortgage is with A&L and i owe about 68,000 and i am tied till july 09, my mortgage is portable, i called A&L today to see about porting my mortgage and more borrowing, i told them my circumstances had changed and i was in temp employment, she told me they dont consider temp workers for lending on mortgages, so i asked could i still port across my current 68k mortgage and borrow the rest (20k) from another lender, she does not know until i apply to see if the underwriters will accept me but as im on a temp contract my income is not considered and also i need to be employed for 3 months for my income to be considered. I was going to put my fiancee on the mortgage but she is only part time on min wage and she gets benefits and tax credits and she has a son.

So can someone please suggest how i could get a 20k mortgage being on a temp contract.

Would i be able to have 2 mortgages on the one property.

Is it possible A&L could refuse to port my 68k mortgage and then force me to close my account and be charged the redemtion fee.

im getting rather worried about this. maybe i should bail out of everything as nothing has been signed :eek:

Leon_W

It is a common misconception that lenders are prepared to "port" (or transfer) a mortgage to another property without asking any questions. This is not the case.

Porting your mortgage is allowed by some lenders if you meet the criteria of the lender AT THE TIME of application (It is basically a fully underwritten application). Never say never bertie but I think it highly unlikely that A & L will port your existing mortgage of £68k, let alone another £20k.

No you cannot have two mortgages with two different companies on one property. You can have one mortgage and a secured loan however that sits as a second charge on the property although rates are higher.

You'll have to get a definitive answer from A & L then weigh up your options.

Regards

beecher

Since they've said they won't increase the mortgage, your only possible option is finding another lender who is willing to lend you £88,000. You'd have to pay the ERC to A&L. Can't see you getting a deal on a temporary contract - you'd have to wait til you've been permanent for at least 3 months.

Best to bail out and wait til July 09 and go with another lender then perhaps?