Remortgaging after MMR

[OkyDoke]

Just wondering if anyone has had trouble remortgaging after the MMR has been introduced?

Worrying (even though we won't be remortgaging for 4 years) as at about this time we will have hopefully started a family and one of us be part time.

So, please tell me, so I can prepare myself...

And what happens if we don't get another mortgage? Would we have to sell??

You wouldn't need to sell, worst case scenario you'd just end up on your lender's SVR. I think that they only need to reassess your affordability If you are borrowing more, changing the term or changing lender.

We would potentially want to change term or lender but not more, we won't be moving for a long time. I guess the option to stay with our current provider will always hopefully be there!

I really wouldn't even give this head space.

The mortgage market is totally different now from 4 years ago and no one knows what'll happen in another 4 years.

There's also the fact that you've no idea what your circumstances will actually be in 4 years- you might win the lottery or get run over by a bus or any one of hundreds of other scenarios.

If you just stick to the principles of maximising income, minimising outgoings and avoiding debt then you'll be in the best position you can be.

The worst that would happen is that you'd revert to the lenders standard variable rate and you'd only have to sell up if you couldn't afford those repayments.

Thanks bearbehind, I know that this is futile but sometimes you just can't help yourself.

It did remind me that we could revert to the SVR though, and that's good enough to help me sleep at night!

Thanks both of you.

We are currently doing a remortgage - it seems like they question everything. We are 2 weeks in and they have come back on 4 different occasions with more questions. The last time I applied for a mortgage I filled in the form and sent off 3 months payslips and bank statements and that was it.

I did a remortgage earlier this year. There was a fairly long (1 hour +) interview with a bank advisor and it was quite detailed. They didn't come back for more information however. Just a follow-up call to make sure I'd been happy with the process.

Personally, I was reassured by the detail they needed. They wanted to make sure I could afford the repayments given my income and outgoings and I thought it was a good exercise.

It's all a bit unknown really. At the moment if we went down to just one of our wages we could afford the mortgage and bills, food etc but that would literally be it. We hope to have had a baby in the next four years too which will affect our incomings as one of us will probably be part time at least.

I am fairly confident that after a year or two we will be a lot better off, barring job loss/redundancy so I think I just need to calm down! Don't think it's a bad thing to be aware of this and to be more careful though.

The smart thing to do would be to budget as if you already had a baby and one wage. Cut down considerably, see how you'd manage, and put the money you save in a deposit account. That way you get to experience the reality of life on 1.5 rather than 2 wages and you also build up a buffer for when the time comes.

Do you currently have savings?

Cogito, this is what I'd like to try and do soon. We have an investment maturing next month which will mean credit card is paid off, we will have 3 months savings (about 6k) and we will be £450 per month better off as money is not going into investment and car loan ends. After Christmas is the time to try this I think.