Porting Nationwide Mortgage

_Andy_

Exellis01 wrote: »

My husband has not failed to meet his credit commitments,

Demonstrably he has - as you state in your original post -

"Unfortunately my husband has an IVA due to unpaid credit card bills"

MarkyMarkD

It's irrelevant, too, whether your credit circumstances have changed since you took out the original mortgage.

Porting a mortgage involves a completely new lending assessment, which is subject to the lender's underwriting criteria at the time you port the mortgage. Portability terms and conditions clearly state that if they are willing to advance you a new mortgage you can keep the same mortgage product. If they won't advance you a new mortgage, that's your hard luck.

There is absolutely no way that the FOS is going to uphold your case. As others say, you would be deluding yourself and wasting your (and their) time.

UK007BullDog

Sell your house. Rent for the next few years. Get rid of your debts and then start saving big time. Then you might be able to buy a little place somewhere outright or get a small mortgage.

You have not been miss-sold at all!!!!!!!!!!!!!!

stu01942

I am in a very similar position and feel a little agrieved too. Me and my wife switched our mortgage to Abbey last year to a 2 year deal on a 90% mortgage. We are now moving and want to port the mortgage to the new property. We are struggling a little but have never missed a mortgage payment or any other financial commitiment and have no IVA's or CCJ's or anything like that. The new property is worth less but keeping the mortgage exactly the same still leaves over 10% equity. They now say we "don't meet the criteria" so will not port the mortage. They say based on their calculation an average family of five will have outgoings of £1500 a month not including the mortgage and so they say we can't afford the repayments. We don't spend that much a month and have shown that we can afford the payments. The freed up equity will also pay off some debts meaning we will be even more able to afford the mortgage payments. They have not at any point said reduced equity is a problem. We are now left with no choice but to get a mortgage elsewhere and have had no problem at all obtaining that. Other lenders have even offered to increase our mortgage. My annoyance is to do with the fact that I am in a two year deal with Abbey and I don't want to switch provider. We feel we are being forced to switch against our will yet still have to pay early repayment fees of about £1300. I want to contest this but I'm sure it would get nowhere so will probably just pay up and have done with it. I could write to Abbey saying how unhappy I am and that I will never deal with them again but I doubt they care about losing one customer. Maybe they don't care about losing customers who can afford to pay. Are customers who default on their mortage more profitable to them in the long run after they reposses the house and then sell it?

inca_2

Taking possession of a house is certainly not profitable to a lender

angelfishmwah

We're in the same situation with Co-op and are awaiting a decision on an appeal, we thought we'd been turned down as it was a financial standing issue but our credit checks were ok - it turned out it is likely to be a LTV issue. The house we hope to be buying is 96% LTV so we are borrowing a chunk of money form my folks, paying an overpayment to bring the mortgage value to no more than 95%, and we think they will be happy (they intimated this on the phone). We aren't high risk and nor is the house, and between us we earn £12k more than we did when we got the mortgage.

Anyone think we're right? Reducing the mortgage balance to sort out the LTV issue?

We were also very confused when we realised porting was so complicated, we didn't realise you had to fit the CURRENT lending criteria, which had unfortunately changed since we took out the mortgage, which was a 100% one two years ago. But as we were ftb's then we're not very knowledgeable!!

Annoying thing is, if we were buying the house in the same area as the one we're selling, it's be more expensive and we'd have no LTV issue, it's just because we're relocating to a cheaper area!

TighterThanTwoCoatsOfPain

@ angelfishmwah - Be careful... dont make this payment using money borrowed from your folks because you THINK they will allow the port to go ahead. Once you make the payment, you might find they still wont allow it, and depending on the terms of morgage, you might not be able to borrow back your overpayment...

angelfishmwah

The idea is we won't make the overpayment until they have agreed that this will allow us to port and we've had that in writing, we haven't overpaid and then asked...the other way round...

Conrad

Of course mortgages are reassessed when you move, you could be an out of work tramp for all the lender knows!

angelfishmwah

Following up my previous posts, Co-op said no no and double no so we have had no choice but to sell the house as planned and redeem the mortgage costing nearly £4k, and get a new mortgage with Halifax (who we bankwith and who jumped at the chance) - Co-op gave set after set of reaosns over a couple of months and basically it seemed as if they were starting to make stuff up to get us to redeem. They said there was an issue with the loan to value and would allow us to overpay to reduce it, then went back on that, that our credit ratings were poor, which they retracted as we proved they're fine, and then that I was over my credit card limit, which I wasn't and haven't ever been!

In the end they won because we gave up, as we were about to lose the house we were purchasing and my health was suffering, borrowed money off my folks on a structured payback plan and redeemed.

I must say that it's fine and of course perfectly contractually OK for them to turn down people who don't meet the lending criteria, but to move the goalposts umpteen times in the space of weeks and never allow us - existing customers who have never missed a payment on anything - to put anything they say right doesn't seem fair.