Fixed term ending - salary has reduced

[Greentrees2024]

Has anyone else been in this position? Has it been ok?

Situation - term ends next year and due to a job change (with lower salary), the amount I still owe will now be more than five times my salary.

Is this going to be a problem? I am feeling worried.

I assume you will have to go onto the variable rate from your current provider? Do you have plenty of equity in the property? Could you downsize?

If you renew with the same lender and same term I don’t think they will check affordability so your options may be limited to what they have

Are you asking if the lender will ask to see your salary and therefore will not be happy?

Or just for advice on how to pay?

If renewing (with a new fixed deal) with the current provider they may not do salary checks.

When I renewed with my provider few years ago, they asked nothing. Unless you need to change provider you should be fine. Check about yours. My was literally few clicks and done.

When your fixed terms ends there are 3 options:

1. do nothing and you are transferred to the lender's SVR which will usually be BoE rate + X% : usually more expensive than the other two bot no paperwork or applications needed
2. Stay with your existing lender withoit changing either the amount owed or the term/payments - you just sign up for one of their deals for existing customers and there are usually no affordability checks done so you won't have to tell them your salary has changed. Just ask your lender for details of deals available to existing customers and pick the best one. You may not get the best rate on the market as compared to optiom 3 but paperwork is minimal and unless your lender has unusual policies you are unlikely to be turned down
3. search the whole market for the best new deal and apply afresh - affordability checks will definitely be done.

I always go for #2

As above - if you stay with your current provider (and aren't asking to borrow any extra) then swapping to one of their new fixed rates will be a 2 minute job online and won't involve any salary checks etc. It's super easy, you don't need to worry at all 😊

Yep, as above - stick with your current lender and they should just offer you a new fixed rate with no checks.

Agree with everyone else about staying with your current lender