Anyone work for a bank? Mortgage advise please.

[username3565]

Really dont want to ring my bank and ask them these sort of questions in case they think I can not afford my mortgage.

Basically thanks to Covid our income is 50% down. Thankfully we bought a house well within our means (at that time). So we are still able to just about pay all our bills. We also now get a little bit of universal credit.

My questions are our fixed rate is up in 6 months time. I obviously don't want to go on to the variable rate. Do they normally offer you another fixed rate and if so would they do a credit check on you or any sort of checks? Or would they just transfer the rate if you agreed to it?
Secondly we have also thought of making our mortgage term slightly longer just to lower the payment and give us some breathing space. I know on my banks website it states you can just do it online. But would this flag anything up when coming to renew our rate?
Thirdly if we did have to do a credit check would the bank take into account universal credit/job seekers?

TIA

Last time my fixed rate ended they sent me a couple of new deals or I could go to variable rate. They didn't credit check us or ask for details of income.

I think, and I might be wrong so hopefully someone else can clarify this, if you extend the term it might be a whole new application in which case I assume they'll want all your financial information etc

I know Santander who we are with take into account child benefit and I think UC as well. I would imagine most companies would do.

Santander don't take UC into account.

They'll allow you to pick a new deal with them, but any change to the term will require an assessment of your income and expenditure. You might fail that as, even though you'll be paying less in the short term, they may not consider you have sufficient to do so. Which makes no sense at all, basically they'll ask no questions for a straight deal swap, but they will for anything else.

(I don't know about other banks. They do have different policies, especially when it comes to benefits.)

Do they not? I'm sure my mortgage advisor asked me about it because he said it counted. Sorry op I apologise!

Rate switch is no questions asked, they just move you to new product. Any change to the term, amount or repayment method is a full new underwrite.

I work for a large bank - remember, it’s in their interest to help you out, and banks are trying to do the right thing by people, especially at the moment (to make up for 2008). You won’t be the only one in the kind of position. It is worth talking to a mortgage adviser, as they can give you the most up to date information from your lender. Banks are all different and they all assess risk differently, but it is in their interest for you to keep being able to pay. They can help you find the best option for you, including mortgage holiday (if you haven’t already had one) etc.

I've just switched mine online - the fix is up at the end of December and I was able to log in and check which fixed rates were available to me.

If I'd wanted to change anything (length of term/borrow more etc), I would have to speak to an advisor, and they'd ask all of the affordability questions.