Portable Mortgage??????

[kuro]

It seems the rules have changed over the last year and now when you re-apply to continue your mortgage on another property there is stricter criteria for lending which is also being applied to existing borrowers despite guidelines put in place by the FCA. Basically your existing lender can turn you down and say that you can no longer afford the mortgage you are already paying for!?

I earn more money and owe less on my mortgage since taking it out as I have made overpayments. I am not asking for any more money either as I have the funds to pay the difference on the new property. Waiting for an answer at present but after reading some of the stories on the net I’m not confident they will approve it.

Has anyone else on here had experience of this?

[Sarnie]

When you port a mortgage, you are essentially applying for your own mortgage again and have to satisfy the lending criteria at that time.

There is no obligation for the lender to agree to you porting the mortgage, just that they will consider it, subject to you satisfying the current lending criteria.

Given the new MMR affordability changes brought in in April 2014, a lot of people have found that their current lender now state that essentially, under the new rules, they can't afford the mortgage they already have.

Good luck!

[MrSparks]

Sarnie said:

under the new rules, they can't afford the mortgage they already have.

So what do they do in this instance? Call in your mortgage and force you out of your home or do they just simply not allow you to move the mortgage and the existing remains unaffected?

[kuro]

Sarnie said:

When you port a mortgage, you are essentially applying for your own mortgage again and have to satisfy the lending criteria at that time.

There is no obligation for the lender to agree to you porting the mortgage, just that they will consider it, subject to you satisfying the current lending criteria.

Given the new MMR affordability changes brought in in April 2014, a lot of people have found that their current lender now state that essentially, under the new rules, they can't afford the mortgage they already have.

Good luck!

Its ludicrous. They are also applying the criteria to existing customers looking to move to a cheaper product and reduce their payments. They then say they cant afford that either and leave them on their existing higher rate product.

[Sarnie]

MrSparks said:

So what do they do in this instance? Call in your mortgage and force you out of your home or do they just simply not allow you to move the mortgage and the existing remains unaffected?

The lender just says that they can't lend them what they require to move home......thus forcing people to have to redeem their mortgage and take out a new one with another lender.

In our experience, Nationwide are the worst for this, we place lots of cases for applicants told by Nationwide that they can't lend to them.........

[Sarnie]

kuro said:

Sarnie said:

When you port a mortgage, you are essentially applying for your own mortgage again and have to satisfy the lending criteria at that time.

There is no obligation for the lender to agree to you porting the mortgage, just that they will consider it, subject to you satisfying the current lending criteria.

Given the new MMR affordability changes brought in in April 2014, a lot of people have found that their current lender now state that essentially, under the new rules, they can't afford the mortgage they already have.

Good luck!

Its ludicrous. They are also applying the criteria to existing customers looking to move to a cheaper product and reduce their payments. They then say they cant afford that either and leave them on their existing higher rate product.

Indeed.

Sounds like they are "cleansing" their mortgage book.................

[Evo141n]

Sarnie said:

MrSparks said:

So what do they do in this instance? Call in your mortgage and force you out of your home or do they just simply not allow you to move the mortgage and the existing remains unaffected?

The lender just says that they can't lend them what they require to move home......thus forcing people to have to redeem their mortgage and take out a new one with another lender.

In our experience, Nationwide are the worst for this, we place lots of cases for applicants told by Nationwide that they can't lend to them.........

That interesting to hear. Nationwide pissed us about around 8 years ago. We renewed our mortgage with them, specifically stating we would be looking to relocate and buy a new property about six months later. Oh no problem they said! Six months later they refused to mortgage the new property, pointing to small print that the 'porting' was only at their discretion. We were then force to pay the early settlement fee :/ and seek a mortgage with a new BS. To say I wasn't happy was an understatement!

[kuro]

Evo141n said:

That interesting to hear. Nationwide pissed us about around 8 years ago. We renewed our mortgage with them, specifically stating we would be looking to relocate and buy a new property about six months later. Oh no problem they said! Six months later they refused to mortgage the new property, pointing to small print that the 'porting' was only at their discretion. We were then force to pay the early settlement fee :/ and seek a mortgage with a new BS. To say I wasn't happy was an understatement!

Oh bks, guess who I'm with?

[Sarnie]

Evo141n said:

Sarnie said:

MrSparks said:

So what do they do in this instance? Call in your mortgage and force you out of your home or do they just simply not allow you to move the mortgage and the existing remains unaffected?

The lender just says that they can't lend them what they require to move home......thus forcing people to have to redeem their mortgage and take out a new one with another lender.

In our experience, Nationwide are the worst for this, we place lots of cases for applicants told by Nationwide that they can't lend to them.........

That interesting to hear. Nationwide pissed us about around 8 years ago. We renewed our mortgage with them, specifically stating we would be looking to relocate and buy a new property about six months later. Oh no problem they said! Six months later they refused to mortgage the new property, pointing to small print that the 'porting' was only at their discretion. We were then force to pay the early settlement fee :/ and seek a mortgage with a new BS. To say I wasn't happy was an understatement!

Indeed.....a perfect example.......

[Sarnie]

kuro said:

Oh bks, guess who I'm with?

Barclays?


Good luck!

[Sarnie]

scottri said:

I take it that if i wanted to move and borrow more, that if i was refused the extra lending then my existing mortgage would be ok and i'd just have to stay put?

Yes.

They can't alter what you have or call the loan in etc (unless you stopped paying them!).

However, it's entirely at the lenders discretion and their lending criteria at the point of attempting to port the loan, as to whether they allow you to do so. The same goes for additional lending or even moving on to a new rate, if they see fit, they have no obligation to do either.

When you take the mortgage out, you agree to 24 monthly payments (assuming a two year rate) at X amount and then 276 monthly payments (based on a 25 year term) on their SVR. Anything other than that is shifting the goal posts from what was originally agreed, therefore they can choose to apply whatever discretion/criteria they wish when you approach them to port the mortgage or borrow more money.....

[scottri]

Thanks Sarnie, i deleted my post as i thought i was asking the same question above, however, you have cleared that up for me.

[russ_a]

Sarnie said:

The lender just says that they can't lend them what they require to move home......thus forcing people to have to redeem their mortgage and take out a new one with another lender.

In our experience, Nationwide are the worst for this, we place lots of cases for applicants told by Nationwide that they can't lend to them.........

I'm with Nationwide. Fixed rate just ended mortgage come up £150 a month. They want a 45 minute interview to see if I can afford the new mortgage that is £300 a month cheaper.

As we want to move we are holding out and will get a new mortgage with a different provider for the new house.

[Sarnie]

russ_a said:

I'm with Nationwide. Fixed rate just ended mortgage come up £150 a month. They want a 45 minute interview to see if I can afford the new mortgage that is £300 a month cheaper.

As we want to move we are holding out and will get a new mortgage with a different provider for the new house.

Yep......they really seem set on shedding as many of their current mortgage book as possible.....

[kuro]

russ_a said:

I'm with Nationwide. Fixed rate just ended mortgage come up £150 a month. They want a 45 minute interview to see if I can afford the new mortgage that is £300 a month cheaper.

As we want to move we are holding out and will get a new mortgage with a different provider for the new house.

Thats what I got told and when I did the 45 minute thing the computer said no! I protested and it was referred to the underwriter and our finances are now currently in the process of being scrutinised.

Its been mentioned that they are using the new rules as an opportunity to cleanse their mortgage books but what do they stand to gain from this?

[Sarnie]

kuro said:

Its been mentioned that they are using the new rules as an opportunity to cleanse their mortgage books but what do they stand to gain from this?

........a lower risk mortgage book. There will be a demographic of customers that they just don't want....

Edited by Sarnie on Saturday 12th September 14:46

[Sheepshanks]

kuro said:

Its ludicrous. They are also applying the criteria to existing customers looking to move to a cheaper product and reduce their payments. They then say they cant afford that either and leave them on their existing higher rate product.

My daughter has just been through this with Britannia as her 5yr deal came to an end. She was on a Britannia NHS discounted rate and moved onto a different product with them and didn't have to go through the affordability stuff. She's off on maternity leave and is going back part-time, so she might have been in trouble if they had checked.

[russ_a]

Not sure what demographic I come under but the mortgage is around 15% of my monthly income and we have about 45% equity.

[Sarnie]

russ_a said:

Not sure what demographic I come under but the mortgage is around 15% of my monthly income and we have about 45% equity.

It could be anything!

You could have too many dependents, be self-employed, too many credit commitments, live in a post code they don't like, not been with them long enough, been with them too long!!

Don't take it personally, another lender will gladly take your money!