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Porting Mortgage gone SERIOUSLY wrong!

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Porting Mortgage gone SERIOUSLY wrong!

edited 23 October 2019 at 12:35AM in Mortgages & Endowments
10 replies 1.2K views
Rose2303Rose2303
6 posts
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edited 23 October 2019 at 12:35AM in Mortgages & Endowments
Hi there,
I took out a two year fixed deal with my mortgage provider, Santander, and was told it was fully portable.
I sold my house, and had to re-apply, as now on benefits. This was agreed, and was told that as long as I took this out by mid-nov my redemption fee would be re-paid, and I have until January to use the port deal, if after this date.
I withdrew from Sale of original property, as property had problems, which would have put me in negative equity. Rang up to change address for new property, and the Port has now been declined, as I have paid mortgage up from house sale. I have never once missed a payment to Santander in the 7/8 years I have been with them.
I did mention when going through this, that my house sale would complete first, and was taking a trip for the Summer. Now unable to borrow, no permanent address, and high risk!!
I was porting £65,000, but actually only need £40,000 - 14%!!!
I feel I have been given very bad advice, not once told not to move out of house. I was in a catch 22, buyer wanting house, me buying an empty house, so no rush for me, just thought my purchase completion would be three weeks behind sale of my house, but if I kept buyers waiting, then they would have pulled out.
What to do??

Replies

  • MovingForwardsMovingForwards
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    See a mortgage broker.

    Buy a cheaper property as a cash buyer.

    Be aware you can only have your capital for so long before it may affect your benefits.

    It's not for a mortgage lender to tell you not to move.
  • silvercarsilvercar
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    Appeal. Do you have in writing that Santander agreed to the port? The problem is that although your mortgage may be portable, the new borrowing is a new lending decision, so it could be that your income doesn;t stack up.
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  • ACGACG
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    If you have it in writing or it was on a recorded phone line, I would say put in a complaint.

    But bare in mind, they may agree to just refund your ERCs rather than actually allow you to port the mortgage.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ThrugelmirThrugelmir
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    Rose2303 wrote: »
    I sold my house, and had to re-apply, as now on benefits. This was agreed, and was told that as long as I took this out by mid-nov my redemption fee would be re-paid, and I have until January to use the port deal, if after this date.

    Reapply for what precisely. Porting only relates to the terms and conditions attached to the mortgage. You would still need to apply for a new mortgage and would be subject to the lenders current criteria to purchase the new property. Mortgages are not transferable.

    Who agreed what? At any time were you provided with a mortgage offer. Lenders are highly regulated and unfortunately don't simply base decisions on the mortgage having been paid previously. Affordability is a basic criteria that must be met.
    “Risk comes from not knowing what you are doing. – Warren Buffett”
  • No it's not for the lender to tell me to move, but have grandchild living with us, and now need a bedroom for him.
  • Yes have in writing, and income hasn't changed. I am on sick, but have income coming in for grandchild also.
  • I intend to put in a complaint.

    Problem is now, that we are now homeless, and unable to get something.
  • We have in agreement from Santander, that we can Port our mortgage over to property we were going to buy - it was agreed in July, and effective until January 2020, based on current monies coming in, which have not changed.
  • ThrugelmirThrugelmir
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    Rose2303 wrote: »
    No it's not for the lender to tell me to move, but have grandchild living with us, and now need a bedroom for him.

    Could you clarify who will be living in the property?
    “Risk comes from not knowing what you are doing. – Warren Buffett”
  • Hi Thrugelmer,
    Yes, there is myself, husband and three children.

    is this the clarification you are asking about?
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