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Original poster

So scared of losing our home - please help

32 replies

anxious78 · 23/07/2022 21:56

The fixed term on our mortgage is coming to an end soon and we want to get a new fixed rate deal. Since we bought the house our financial situation has become less stable than it was (we both got made redundant and are now self employed). We did speak to a broker who advised us that it would be hard to get a new mortgage as a result and that our best bet would be to stay with our current lender.

However, I’m terrified that the bank could refuse to give us a new fixed rate deal, and that we will either have to pay the standard variable rate (which is a lot more expensive than the fixed rate deals) or that they will withdraw the mortgage altogether and we will lose the house. Is this something they can do? I’m feeling so anxious, please help.

OP posts:
chipsandpeas · 23/07/2022 21:59

usually your lender will offer a new fixed deal or you will go onto the SVR with no further checks

Pinklady245612 · 23/07/2022 22:01

I'm pretty sure they can't just take the mortgage away that you are on (provided you are making payments etc) although it would mean going onto the standard variable when the fixed term comes to an end. Check with your current provider for deals - we are just going through the renewal of our buy-to-let and we have access to an online portal where we can sign up for new deals with no application of any kind, so it may be easier than you think.

Alarae · 23/07/2022 22:02

They won't pull your mortgage, you would carry on at your lender's standard rate.

They should offer you a new deal without further checks. Usually these would appear on your online account within four months or so of your deal ending (depending on the lender).

CactusFlowers · 23/07/2022 22:05

When we did ours we just did it through the online portal without any checks. Took just minutes.

fedup078 · 23/07/2022 22:06

@CactusFlowers same here
They weren't to know I'd just thrown h out and was paying it on my shit wage as no questions were asked or checks done

CCSS15 · 23/07/2022 22:07

They won't withdraw your mortgage so don't worry about that - worst case scenario is reversion to the standard variable rate

Are your payments up to date? Can you share who the lender is?

Depending on how long you have until your fixed rate expiry you may be able to secure a rate now before they increase further.

overthinkersanonnymus · 23/07/2022 22:09

I work in mortgages, just ask your broker to do a product transfer with the same lender. There won't be any income evidencing needed, depending on your lender.

Lola3034 · 23/07/2022 22:12

No one checked if we can afford new deal. I was asked once if our financial situation changed since taking out the mortgage and I lied that it didn't 😎even though my other half became self employed. Always got the deal I was after!

Harridan1981 · 23/07/2022 22:17

They don't normally recheck, just remortgage with the same lender

CassieLane · 23/07/2022 22:24

Lola3034 · 23/07/2022 22:12

No one checked if we can afford new deal. I was asked once if our financial situation changed since taking out the mortgage and I lied that it didn't 😎even though my other half became self employed. Always got the deal I was after!

Halifax rang my employer the day it was meant to change over.

They cancelled the mortgage.
At the time I was employed by the LA in schools. I’d changed school, not LA. They rang my old school and as admin said I’d left, cancelled the mortgage.

mrsfoof · 23/07/2022 22:29

Who are you with? I recently came to the end of a deal with Santander. It was dead easy to apply for a new fixed term deal online. You just have to tick a box to confirm that your financial situation remains the same and they don't do further checks.

Also, don't forget that you can apply for a new deal a few months before the old one ends without penalty (varies by lender / deal but it was at least 3 months with Santander). Might be worth looking at before the base interest rates increase again?

WorkCleanRepeat · 23/07/2022 22:36

We recently moved to a new fixed rate with the same lender. No further checks. payments reduced.

Original poster
anxious78 · 23/07/2022 22:39

Thank you for the replies. We could afford to pay the new fixed term rate but wouldn’t be able to afford the standard variable rate, as it’s quite a bit higher. So if they don’t offer us a new fixed rate deal we would have to sell.

OP posts:
Shamoo · 23/07/2022 22:42

As others say, my bank (HSBC) let you switch to a new fix online with no checks. Can do it six months in advance too. Very easy

TheRealKatnissEverdeen · 23/07/2022 22:44

Thanks for everyone posting about the fixed deals without checks.
I've been concerned about the same OP. Fixed deal ends in Feb and since getting the house I've maxed out credit cards during home reno. Paying them off now and hope to clear before November but have been very nervous!

ChiefWiggumsBoy · 23/07/2022 22:51

@anxious78 They won't 'offer' you a new rate. You will do a rate switch with them, with just requires that you sign a declaration to confirm you can afford the repayments. They won't do any additional affordability checks.

Please do not worry! This is completely normal.

Call your bank on Monday and ask when you can start instigating a rate switch (most lenders will let you do it with three months to go without charging you). They'll do a 'desktop' valuation which means they'll use online sources to check the valuation of your property - if you bought in the last few years it's likely it's gone up. This might move you down into the next loan to value bracket than you were when you took the mortgage so you might get a pleasant surprise. But please, be calm. You do not need to remortgage to another lender, a rate switch will be fine.

mumwon · 23/07/2022 22:55

Disclaimer as this may not work or be a good idea (hopefully an expert mumnet will clarify!
Can you not extend length of mortgage repayment - aka 25 to30 years obviously you will pay more interest but I think the monthly figure should go down

Original poster
anxious78 · 23/07/2022 23:21

We took the three month mortgage break (the government scheme) during the pandemic but apart from that we have never missed a monthly payment.

We can’t extend the length of the mortgage as we’re at the maximum number of years already.

I really hope getting a new fixed rate deal is as simple as everyone’s saying.

OP posts:
WinterMusings · 23/07/2022 23:29

@anxious78

who are you with?

with nationwide it took me about 2 minutes online to accept the new rate.

we won't go into the stupid amount of I time I spent deciding how long to fix for

please stop stressing

expat101 · 23/07/2022 23:33

Our bank sends an alert when a month out from a fixed term loan ending, from there in internet banking you click on what interest options they give, usually it prompts for how long you want to re-fix it for, and then what the new repayment will be, or if you want to choose a higher one/shorter term etc. once you have made your selection, they send out in the mail a letter confirming details and the loan clicks over automatically on the date.

we too are self employed and I agree with your broker that banks def. Make borrowing harder for self employed people. I’m not sure why as we know how far ahead our work is, whereas employees really don’t necessarily know if they have a job next week…. Our daughter is currently dealing with a broker for borrowing for a home loan and even as an employee with excellent savings and no debt, is being given the run around as to when to expect approval.

However our accountant was worth their weight in gold last year when we borrowed for an investment property, they ran circles around the bank’s accounting of our finances and covid implications, so def. Get that organised for yourselves down the track. 👍

JinCocktail · 23/07/2022 23:33

I took a new fixed rate with my existing lender (Natwest) they didn't ask my income as the mortgage was already with them. Broker said a new lender wouldn't have accepted me though.

Can you take on some additional work, delivery driver for Sainsbury at weekends or something, just for a few months until your mortgage is sorted? The extra income may boost your credit score?

NotDavidTennant · 23/07/2022 23:46

As long as you're making your payments they can't withdraw the mortgage altogether, so you can stop worrying about that. It's possible that you could end up on the standard variable rate (and you will go on to it if you do nothing) but it's likely they will offer you a new fixed deal if you ask for one.

SuperLoudPoppingAction · 23/07/2022 23:50

How long do you have left on the fix?
For me, it ended up not costing too much to get out of the existing fix early.
So I did that to get a lower rate.
They didn't check affordability again but did ask us to update employment details.

BirdyWoof · 23/07/2022 23:55

Agree with PPs- we stayed with ours and they didn’t do any checks. It was the best rate available, luckily, but broker advised against going with a new provider anyway as over the course of our mortgage we had had two children and I was currently on maternity leave (ie earning sfa), so it wouldn’t have been as easy to get a good deal if we had moved. We just updated our details and agreed to the new deal, was super easy and quick.

EmeraldShamrock1 · 23/07/2022 23:55

It's great to read a thread that puts the OP's mind at rest.

In the meantime if self employment isn't working out financially maybe it's time to pick up something more secure, if you can keep your business afloat on the side, you'll be tired but you'll sleep better knowing that the financial conditions are improving.