Mortgage changes

[redken1]

“I am somewhat sympathetic to your situation Ken, but I do think the loose credit where 125% mortgages were given to anyone that could fake a P60 did bring us to a bad place and it does need to be addressed.”

Ducatista, excellent points, some sound advice and I do agree with you on the above.


I have been with my current lender for 9 years in which time I have never been late with a single monthly payment. Due to the present economic climate I wish to downsize my property to lower my housing costs to offset rising costs in other areas in my living budget. It’s as if the new rules are retrospective. If I stay in my current property the length of the term and all the other aspects of my mortgage remain unchanged. But, if I move to a more affordable house and take my so-called portable mortgage with me, the rules are completely different.

Thanks to you and Graeme. I am going to take stock of the situation and seek advice before deciding on a plan of action.

[Ducatista]

If I stay in my current property the length of the term and all the other aspects of my mortgage remain unchanged.

I understand your point.
The situation is the lender made a contract when lending criteria were different and they have no choice now but the hold up their end of the bargain.

I am in that situation too but in a good way.
I am paying 0.99% on my mortgage. That's not a situation the lender would chose now but they are stuck with it.
That's the way the cookie crumbles and when you strike a bargain both sides have to hold up their end for better of worse.

But, if I move to a more affordable house and take my so-called portable mortgage with me, the rules are completely different.

Yes it a new contract. New lending criteria apply many of which are sensible and correspond with responsible lending in this economic climate.
A mortgage is a loan on a specific property.
Mortgages are NOT portable, lenders allow you to port your product to a new mortgage.
It's a new contract and the lender can apply whatever new rules they like (within the law) e.g. they can change LTV criteria, creditworthiness, age rules etc.

I understand that it seems illiogical that they won't give you the lending you have already got.
But the fact is if you applied for that now you wouldn't get it, you only have it because previous lending criteria allowed it at that time.

[Rabb]

Ducastista - I am aware that they Store deeds on computer these days - however when you have paid your mortgage they still have to send them on paper to you.
Paper copies of house / land deeds are the only bona fide proof of ownership.

[Mitch9128]

Mortgage??!! You capitalist pigdog, all property is theft etc etc etc

[redken1]

“That's the way the cookie crumbles and when you strike a bargain both sides have to hold up their end for better of worse.”

I put it to my lender’s advisor that it was difficult for me to accept a verbal offer on my current property due to the fact that they could not agree in principle (subject to meeting all the criteria) to continue with the portable loan until I had identified a new property. He replied, “There is no legal obligation on your part Mr Glass, you can always pull out after accepting a verbal offer.”

I am a man of honour and my word and obviously play under different rules from the financial institutions, in this case anyway.

Ducatista, with reference to your comments about inheritance tax etc, we both know that rules which may be appear effective on paper are not so easy to enforce in reality.

Of course, I would never consider falling foul of the law, but I do need to wise-up and I will. Still haven’t ruled out joining all those shrewd capitalist pensioners in rented accommodation. :P

And Mitch, if Thatcher hadn’t sold of all the council houses I would have applied to rent an affordable home from my LA. : :-X

[Col]

Justa throw this in the mix.....

bloke agreed sale of house at close to advertised price but upon mortgage lender valuation offer was reduced by 20% ...sale collapsed :-?

There are going to be plenty of probs ahead and, unless high salaried, lenders are going to reduce amounts so either prices reduce or it all comes to a shuddering halt

As for rents with reduced housing benefits and assuming lower house price then rents will either reduce or there will be an abundance of empty houses

interesting :P

[Ducatista]

we both know that rules which may be appear effective on paper are not so easy to enforce in reality

The sale of a home is very easy to detect. It's all registered at the land registry.

I agree with both yourself and Snowy that there are ways to protect your wealth.
Some are entirely legal and above board, other ways are shall we say more resourceful.
Personally I would prefer to be on the right side of the law and have peace of mind rather than have my long term situation dependent on no-one finding out.

but I do need to wise-up and I will

Great, me too.
There is a lot of info at
http://www.ageuk.org.uk/
They do loads of factsheets and even books.
I do think professional advice is a good idea, but personally I'd spend some time doing my own research from the internet and books, so that when you are being charged £250 per hour by the solicitor, you are well informed and at least know what questions to ask.

[Ducatista]

however when you have paid your mortgage they still have to send them on paper to you.

They often charge a "deeds release fee" for putting them in an envelope, but once you have them you don't then have to pay the bank £40 per year for storage. You never did actually most solicitors will keep them for free. It's just another cash cow to make money from apathetic people.

The biggest advantage of keeping a mortgage if you don't need one is that it keeps a "charge" held on your property centrally at the land registry and this is an effective way of stopping fraudulent transactions as it makes it more difficult for anyone else to put a charge on your property.

[Col]

They often charge a "deeds release fee" for putting them in an envelope, but once you have them you don't then have to pay the bank £40 per year for storage. You never did actually most solicitors will keep them for free. It's just another cash cow to make money from apathetic people.

The biggest advantage of keeping a mortgage if you don't need one is that it keeps a "charge" held on your property centrally at the land registry and this is an effective way of stopping fraudulent transactions as it makes it more difficult for anyone else to put a charge on your property.

That isn't exactly fair to say as people are not told what options are available for deeds and,of course, the minutiae comlexities of having a mortgage/home/business are in place simply to create 'experts' that we can all 'enjoy' : paying because the info is difficult to find and the processes unduly complex due to governments fiddling about---simplicity of transaction saves cash---and almost unheard for a solly to do somat entirely free..my deeds with the mortgage lender and not checked if they charge to have them.

Not sure what you are getting at about 'fraudulent transactions' :-?

mildly interesting subject all the same