What happens if your mortgage needs to be renewed but…

[Uhmmmp]

You have stopped work? Can you simply not get a mortgage?

If so, what I don’t understand is why you can stop work while in the middle of say a five year term and as long as you meet the payments it’s fine?!

Because as long as you meet the payments, it’s fine. You’ve answered your own question.

You'd most likely revert to the standard variable rate if you couldn't satisfy income and affordability checks to remortgage.

You don't need to declare that, it will just carry on with you on a new deal, as long as the people on it are the same as before.

You’ll just go across to their SVR, but the interest rate is likely to be much higher 🥴

Since getting my mortgage I no longer work, I get an ill health pension along with reduced esa payment and pip, since then I've had to stay with the same provider and can renew but can't change the length/port etc as that would need a new credit review. They know my circumstances have changed but are happy to continue as long as I don't default I'll be fine.

Your mortgage company have committed to lending you the money until the mortgage is paid off within the timescale set. It's only the fixed rate part rate that expires and you would go onto the SVR.

In my experience you can still have a new fixed rate with the same lender. They don't ask for any details about finances you can just do it online.

Your current lender would probably be happy to move you to a new fixed rate deal. A new lender would probably refuse you unless you could show a lot of savings or another form of income.

If you stay with the same provider they don’t redo the checks - this was our experience .

You don't need to re-do affordability to re-mortgage with the same company.

You can renew with the same provider without any checks and they don’t care if you are working or not as long as you meet the repayments

This depends on your current lender - for us to get a new fixed rate but not change any amounts (extend timescale, increase mortgage value etc).

Your best speaking to your lender to see what they require.

You can usually get another fix with your current mortgage company without having your income renewed. The problem would be if you tried to switch mortgage companies.

We got another fixed rate with the same lender twice now without any affordability checks done as we were not changing anything on the mortgage. If you’re remortgaging or changing like length then you’ll need new checks with my lender.

@herbalteabag won’t it default to tracker? Would I be able to get a new product?

@Friendlyuntilitwasnt hi, thanks, what rate are you on then? The same as when you were working or do you have to take whatever they give you?

@Freshstartyear25 @Overthebow thank you both

You should be able to with the same provider. Ours haven't re-assessed us at any point when switching products.

Just do a product transfer with your current lender. No affordability or credit checks etc

No you can have whatever rates are available so mine is 1.34% fixed for 5 years. Then I'll just get another fix next year when it expires. I had originally planned to shorten the term (while the rates were low) however that wasn't possible so I was told to overpay each month to the equivalent of reducing term. Then when I come to renew (and rates are higher) it won't be as big as rise.

It wouldn’t default to a tracker, you’d go on a svr which would be a higher interest rate.

With most providers they wouldn’t check affordability if you’re just switching to a new product, however if they were to do an affordability check they’d want proof of how you’d pay your mortgage. Wouldn’t have to be from employed income, if you receive benefits for example that would still count towards it. You’d need to show proof of where the money comes from that you’re using to pay it now.

You can’t just not have a mortgage. You would either need to pay back what you owe, or your house would be repossessed.

As long as you don’t want any additional borrowing your mortgage provider won’t be completing any affordability checks. They will just switch your rate.

the problem you may have is if you want to change providers. Many people got trapped when Northern Rock went bankrupt as they were placed onto much higher rates and no other lenders would take on the mortgage as people’s circumstances had changed and the new lender didn’t want to accept the risk.

We stayed with our mortgage lender when Dh went from employed to self employed many years ago as they don't do any new affordability checks. You just choose a new product from them. You can start looking about 6 months before the end of your current deal. Ours allowed us to lock in a new deal 6 months before so we got a better rate as at the time rates were rising.

We have stayed with the same lender for about 18 years because they always do a very competitive rate and we don't have to jump through any hoops. I just check their offers against the top mortgage rates at the time.

You get a retention product. They don’t check affordability

Not true