Mortgage renewal upcoming - Change of circumstances

[K8Davidson]

My partner and I’s mortgage will be coming to an end in September (it was a two year fixed rate). We’ll be booking an appointment with our mortgage broker next week.

Our current mortgage is 5% and I overpay £10 per month. Our LTV rate is 80%.

What worries me is that when we bought our house (almost two years ago) both my partner and I were employed full time. However, I am no longer employed and I am claiming contribution-based ESA. I’ve been placed in the support group.

I’m worried that we won’t be accepted for a new mortgage rate because I’m no longer employed. Is anyone able to offer any advice please? I’m very anxious (and embarrassed too.)

In my experience, if you renew with your current lender they don’t look into this at all, and you will be fine.

Yes need to go with your current lender unless your partners earnings are high. So not sure there is much point in seeing a mortgage broker. You can do a calculation on the lenders websites to get an idea whether you would pass affordability checks now.

Thank you. I’ve just done some research and my current lender is offering:

4.40% fixed for 5 years

or

4.65% fixed for two years

Thank you, so much. I feel a bit better now, especially given our current lender’s deals are more affordable now, than our current deal.

Who is the lender?

I’m with Barclays and 3 months before the end of the fixed term the option popped up on the app to choose a new rate. I didn’t even have to declare that there was no change in circumstances.

If you can let us know which lender, someone might be able to reassure you what the process is with them.

Thank you - we’re with NatWest

We stayed with Nationwide for the whole of our last 15 year mortgage. They always offered close to the best in the market and no hoops to jump through every couple of years.

I am a single parent and my mortgage is with Barclays (they take into account some benefits). My income is made up of ill health pension and esa. I probably wouldn't get a mortgage now if I applied so I just stick with Barclays and choose the best rate. It is obviously not always the best rate on the market but it has meant that I've been able to keep my mortgage. The broker I saw couldn't find me a deal but did advice me to take a longer term due to my circumstances.

We just renewed our mortgage with NatWest this year as our 5 year deal was coming to an end and I had been self employed for just under the 2 years most mortgage companies want you to have. It was really quick and they didn't ask for any additional info.

This ^

I’m so relieved to read this - thank you for sharing. I just spoke to my partner about it and we’d like to go with the 5 year fixed rate. Especially given the rumours about an upcoming recession.

I used to do admin for a mortgage broker and the lenders didn’t ask for any updated earnings or anything like that. On most of their systems you only had the option to select a new product rate and also request a change of term if wanted.

I can’t imagine it’s really changed much in the last few years but I’d not worry about this at all.

Obviously that’s assuming you’re sticking with your existing lender and not remortgaging to another.

If you're going to stay with current lender do the switch yourself. Brokers can do this for you if you stay with current lender just much easier to do it yourself

You can probably just log in to your online account and choose a new product now. Although I’d wait a couple of weeks because I suspect interest rates will drop next week on 8th May.

Also with NatWest. Log into your mortgage account 3 months before and it will give you 4 options, 2 year and 5 year fixed, both with a fee and fee free option. Simple few clicks and job done.

Really? How come on the 8th of May?

Because that is when the next Bank of England monetary policy committee meeting is!

I just remortgaged with the same lender, HSBC, at the end of my 2 year fixed deal. I went for a 5 year deal.

The broker who set up my original mortgage did this one as well. No fee from the lender or the broker for me to pay.

The only check that the lender did was a basic credit file check with Equifax, to check for any new debts I assume. After that the remortgage was approved.

Thank you. The current mortgage deal ends in September, so three months before will be June. I’ll have a gander then 😊

Just looked again on the MSE mortgage best-buy comparison site, and it says that the NatWest product we want is only available through a mortgage broker.

We will have to make an appointment after all

You could phone NatWest and ask if they can offer a similar deal if you remortgage with them directly.

Also with Natwest and coming to renewal. Stayed with them for years (2x renewals) as have a lot of IVF debt and really don't want to lay my finances bare to another lender again. Take the Natwest deal. It's better that what you have. You can over pay £20 now if you like.

@K8Davidson have you logged in? You’ll see what’s available there, although it might not be showing yet. With our lender it’s as simple as logging in 3 months before renewal and selecting the new deal from a list.

I have, it says “not eligible to switch.” I expect we’ll be able to switch next month as we’re not at the three month point as of yet.