direct line morgage has changed! can i do anything about it??

I don't believe their explanation that they can no longer offer the same products due to legislation changes. I presume they are talking about mortgage regulation - but that doesn't prevent any sort of mortgage product that I can think of.

They are feeding you a line, and as Scott says IF they can't provide you with the same product, they should provide a similar product at the same (i.e. no) fee.

If they refuse, and the portability is in your Ts & Cs, complain and keep complaining all the way to the ombudsman.

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A quick look at Direct Line's website reveals that in fact Direct Line Financial Services, who used to provide Direct Line mortgages, have stopped selling mortgages to new customers. Instead Direct Line mortgages are now provided by Royal Bank of Scotland.

(And yes, RBS owned DLFS, but it was a different legal entity).

This makes the situation slightly different to how they've explained it to you ... and makes your situation rather more difficult. I don't think that you can compel DLFS to allow you a mortgage (as a port of an existing product) if they are no longer selling mortgages to new customers. BUT I would still suggest that out of ongoing goodwill Direct Line should waive some element of the fees on a new mortgage if that is what you would have had on your old mortgage.

I'm interested in what you expect to be waived on a port - I would expect the application fee to be waived, but not legal costs or valuation fees. My perspective would be that including portability in the Ts & Cs just allows you to have the same terms maintained when you move house - and not necessarily that all costs of the new mortgage will be waived.