Impact of job change on end of fixed rate mortgage deal?

[Whizbang]

Can I ask a daft question to the wise heads on this board please....

I am 4 years into paying off a capital repayment mortgage. I am on a 2 year fixed interest rate which expires in October. I am on my own paying the mortgage so no partner contribution to consider.

I changed jobs due to redundancy in April 2016. However I am not very happy with my new company and would like to make a change in the near future - either to set myself up as a sole trader, or to change to a different company.

That's the background, here comes the question....

Does anybody know how my mortgage company might view a job change or a move to become a sole trader shortly before I have to negotiate a new interest rate on my mortgage? I know that if I were seeking a new mortgage deal, a job change in the few months beforehand and sole trader status could damage my chances of obtaining a mortgage. But does the same hold true when I already have the mortgage, but am reaching the end of a fixed term interest deal? Could the mortgage company penalise me with a higher fixed rate, or (horror of horrors) ask for repayment in full if I change my job a couple of months before renegotiating my interest rate?

I am trying to work out whether I should hold off improving my job situation until I am past the milestone of renegotiating my interest rate, or whether it wouldn't make any difference to the new rate that I am offered. I just don't know.

If anyone has any experience and could offer me their thoughts, it would be much appreciated. Thanks.

No idea but I hope to do the same so I hope someone will be along with the answer soon!

I can't imagine they would make you repay it in full, that seems hugely unfair.

1. They can't make you repay in full - you would just move to SVR as per your lender if you didn't qualify for a new fixed rate.

1. I would personally wait before setting up my own business but if I was just moving into different employment then it would be fine.

Thanks Hamster. Hmm, answers are thin on the ground. I'm going to speak to a mortgage adviser, then I'll post to update you since you have a similar quandary

Thanks to you also Moany

If you move lenders they will almost certainly want 3 months of payslips and proof you've completed a probationary period if you're in a new job. If you stay with the same lender they probably won't even check - Natiowide never checks us when we change mortgage product good job as we'd never meet their new affordability criteria

I work for a major lender and your job has absolutely no impact on your eligibility for a new product at the end of your current deal. In fact you can switch on line with no application to fill in and no declaration of earnings etc.
If you were to come and see me in branch I would be able to recommend a new deal regardless of of employment status, although I would have a conversation with you about your ongoing ability to pay, and if you needed a reduction in payments could look to extending term or whatever.

I can only speak for my employers procedure though.

If you wanted to move away from your current lender then the new ended would obviously need to do income checks etc as they need to reassess the risk.

Oh and if you were a new borrower at my place as long as your new job is permanent and you have at least one full months payslip then we can use that income, regardless if you are on a probabtion period or not.

I would stay with your current lender, and get the best new deal you can from them. We've changed deals several times since moving seven years ago and there is never any kind of inquisition/proof required regarding income. They ask a standard question along the lines of "are you confident in your ability to pay the mortgage on the new deal?" and that's it.

I've changed deal several times staying with my current lender and they don't ask any questions. It will just stop you moving to another lender so you'll be capped at the best deal your current lender will give you.

I also worry about this! I want to change jobs which means a lower income. I have heard that if you stay with the same lender then they don't ask for proof of income, can anyone tell me which major lenders don't check income of existing customers when wanting a new fixed rate etc?!

Accord definitely don't. Just changed with them for the second time and not been asked. Customer service pretty good too. They only deal with new clients via a broker, you can't go to them direct.