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.)

Yes … some Lenders allow you to choose a new mortgage deal earlier but clearly not NatWest.

Sit tight. Ours is up 31 Aug and only just showed up the other day.

And agree 100% about the 8 May wait. I am 75ltv (because I'm like 71 and can't get it to 70 in time) and the current rate for us was about 4.59 if I recall. I'm waiting to see if the rate drops on the 8th and then will lock in.

We are about £13 better off a month on what they offer now and no fee. But I'll take a bit more please!

I hear you! With the deal that’s currently showing, we’ll be £50 better off each month. Fingers crossed it’ll drop again on the 8th for us🤞🏽

stay with the current lender!

i massively changed circumstances which made me basically un-mortgageable - so i stayed with my current lender. No checks, no issues - I can afford the mortgage but not for them IYSWIM

Thank you. Yes, I’ll certainly be staying with my current lender

Bear in mind that fixed deals don't necessarily react to changes in the BoE base rate as the short to medium term interest rate expectations are already priced in.

But definitely hang on and see what Natwest offer you. As long as you're currently meeting your mortgage payments, and running any other accounts you have with them properly, even with your new circumstances, they'll want to keep you as a customer so should offer you a decent enough deal.

It's just that it's a little early if they don't do this until 3 months before the end of your current one. Just wait and see and if nothing is showing when you get to under 90 days before expiry, then's the time to call and ask.

You can ask to move to a tracker rate if you're really stuck, instead of the standard candle

Variable * not candle

Also, even though the base rate may change on the 8th, the new deals may not show straight away.

You don’t need to go via MSE - use the NatWest mortgage app and click on manage my mortgage once you are within 3 months - it’s very easy to do after that. You can also keep checking back and swap deals again if the mortgage rate decreases between now and the new mortgage kicking in

(I personally found NatWest a nightmare when it came to change in circumstances you really don’t want them finding out you are down an income)

Some companies allow you to transfer to the lower rate if the rate drops between agreeing a new fix and starting on the new fix, just something to check.

The Bank of England base rate has indeed been cut to 4.25% today.

This is true but @K8Davidson your LTV is so high it may be a non-issue

Get back in touch with your broker- they will be able to assist you whether a product transfer or remortgage

Thank you. I’ve already booked an appointment with our broker.

Just an update:

We have sorted our mortgage product transfer (NatWest) today. We went for another two year fix at 4.92%, which is cheaper than what we're currently paying (5%).

Our mortgage broker said that if the rates continue to drop by September, then we can swap our current rate for a cheaper deal. There’s no product fee either.

That must be a relief to have it sorted - well done.

Yes, such a big relief. Thank you!