Mortgage fixed term ending

[CauliflowerCheese00]

I wondered if anyone could advise on what happens if I want to take up a new fixed term product with the same lender when my current product ends?

I am looking at a new job which is a 2 year fixed term contract - if I stay with the same lender am I right that they don't do all the affordability checks again, so this won't be an issue?

Also if I wanted to add time onto my mortgage length (currently down to 12 years, financially with how high interest rates are heading I'm considering adding 5 years to keep monthly payments affordable) would they need to do new checks or is that an easily done thing?

I can't accept the job if it's going to impact on me getting a fixed term product ☹️

In the current market I can't imagine any lender wouldn't do new affordability checks. Why not go to an independent advisor so see if there's a better offer available elsewhere?

No new affordability checks on us last summer- this was with Nationwide. Was before the big old Liz Truss-induced crash though.

Will the job not pay a 'salary' if it is FTC (as against a contracting position with a day rate)?

We didnt have fresh checks but we didnt change any terms of the mortgage, im sure if you change the length of the term, borrowing amount etc its treated as a new application, and checks would be done.

Speak to a broker, they'll be able to advise you on the best course of action.

Re: existing lender if you make no changes they'll just switch the rate (called product transfer)

If you stay with your current provider then they usually won’t do checks to accept a new fix, but they might if you change the term of your mortgage.

We just remortgaged with the same lender and they did no checks. We didn’t change the term of the mortgage though. As others have said, it’s best to speak to a broker who will help.

To just change the product you will not have any affordability checks but you will if you are making a change to the term. If you go to a broker you will also need to prove your income unless all they do is a product switch with same lender. I work as a mortgage consultant and see this daily. With a lot of lenders you can even change your product online if you know what you want and don’t need any advice. When does your product end?

Thanks all very helpful 😊 I will contact a broker but I can't look at new deals until the summer so just wanted a quick check!

Yes it is salaried, and probably at slightly more than when I took out this product - but I'd read that a fixed term contract was seen as a risk to lenders - information online is a bit grey about how long a fixed term is acceptable.

When is your fixed rate ending? You want to be looking at new mortgages 3-6 months before it does. Starting a new job is not a hurdle like it used to be.

We also remortgaged with the same lender, same term a couple of months ago so on a higher rate. Zero checks.

It wouldn't end until 2025 - I'd only be a few months into when my mortgage product ends. Maybe the info I was reading online is a bit outdated and it won't be a big problem?

Yes, staying with the same lender means no affordability checks are done until you move lenders. However, a new job isn’t usually an issue; as long as there hasn’t been a gap between your previous employment and your new employment and you have a permanent contract, you should be fine.

We just remortgaged with same lender (and shortened our term) and there were no credit checks - just went straight through. If we’d wanted to borrow more or extend the term then said additional checks would apply (that was with Nationwide)

Definitely use a broker.

But yeah I went back to uni 2 years ago so don't have a salary and when ours ended we just stayed with the same lender and got a new product and they didn't do any affordability checks. Worked out well.

Mines up again in June. Dreading it! It's going to go up so much and I'm still a student so our options are still limited.

I'm with barclays and had no affordability check last year. However originally I wanted to decrease my mortgage term but was told I'd need affordability check so I was advised just to overpay.

If you don't change anything then no check will be made with your current lender. However, you want to change the term, this will trigger the checks.

We are 'stuck ' with sane lender for sane reasons - DH is on an interim contract so we won't pass new affordability checks at present .

Hi OP, I think if you change the length of the mortgage you might trigger checks even with your same lender.

HOWEVER, when I was giving 'evidence of my employment' for the checks, all they wanted to see was 3 months payslips - they had no interest in the underlying contract between me and my employer.

As long as you'd have payslips under the FTC then I would think you'd be fine? But this is the specific question for the broker!

Best of luck!

I’d speak to mortgage advisor, we’re getting a new mortgage and both of us have brand new jobs. It’s been fine so far, advisor has really helped.

You can look at having a new deal you can arrange this up to 6 months before it ends have it in place so you know how much you will be paying.

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