Porting Morgage Charges

[Carrie Anne]

I ported my morgage with the Bristol and West and because there was a gap of 2 weeks between ending and starting the new mortgage I was charged �890. This was five per cent of my mortgage. Do you think this was unfair?

[bednobs]

if it was in your terms and conditions, then i guess they are within their rights. I dont really understand what you mean though, was this a charge for finishing your mortgage early that would have been avoided if you'd waited 2 weeks?

[alijangra]

Sorry Carrie Anne I know this is your question, but what is porting?

[Oneeyedvic]

I really don't understand this question either.

Usually when you are taking out a new mortgage, the solicitor will ask for a settlement figure together with a daily rate charge. This is so that there is never any outstanding amount and the new mortgage will cover in full the settlement of the previous mortgage.

If you would like to clarify your question, would be more than pleased to help.

(Also just because it is in terms and conditions does not mean it is legal - see current bank charges for late payments and the reclaiming of, as an example)

[Carrie Anne]

Porting means when you move house you can take your mortgage with you. I moved home and was told that I must end my mortgage on tthe same day I take out the new morgage for my new home. What I didn't understand was that as I was buying an brand new home, no builder will give a definite date when you can move in as there are so many things that can go wrong. We were held up by Anglian Water providing the water supply. I feel this should have been made clearer by the Building Society - they are supposed to be the experts! . I do appreciate that there must have been costs involved but �890 seemed a bit steep What was this money for?

[Oneeyedvic]

Not something I have experience with but I agree you seem to be have charged an excessive amount.

Write in to the Building Society and ask them how they have come to the charge.

If no answer is forthcoming then I would suggets that you follow the same principles as claiming back unfair bank charges.

It may also be worth contacting the finance / money section of the paper of your choice.

[bednobs]

maybe its just two weeks daily charge?

[Oneeyedvic]

hopefully not if its 5% of the mortgage!

[Carrie Anne]

Thank you very much for your answers. I think I shall defintely continue to challenge them. I have written but all they they came up with was it was in the terms and conditions. I accept perhaps I should have in hindsight questioned them more fully about this penalty but in all honesty I thought as I had applied in plenty of time there should be no hitches. And as far as I can see from the mortgage offer no mention was made of an exact figure just that there would be a penalty charge so we didn't fully take in what this would mean. I also still feel they should have made it clearer that builders are often behind schedules so it would be almost certain that this penalty would be payable.