Mortgages

[LordHaveMurci]

Once you have a mortgage, is your credit worthiness monitored at all? If you get into loads of debt, could it affect it?

Not me, mines almost paid off, just a random thought.

[67Dino]

There’s no regular monitoring, but when you renew your current fixed rate or other discount deal, it could well be looked at. If your rating was poor, this could mean you wouldn’t then be able to get a new deal with this bank or a mortgage at another one.

However, as long as you’re paying your mortgage on time, Banks generally won’t rescind your mortgage (contrary to popular belief they really don’t want to evict people unless they have to). Most likely is that when your current deal ends, you get put on a Standard Variable Rate mortgage which is, rather unhelpfully, significantly pricier.

(I’ve said ‘you’ but appreciate this was not your situation)

Edited by 67Dino on Saturday 5th February 22:47

[Sarnie]

LordHaveMurci said:

Once you have a mortgage, is your credit worthiness monitored at all? If you get into loads of debt, could it affect it?

Not me, mines almost paid off, just a random thought.

Your current lender wouldn't ever credit score you unless your were applying to port the mortgage or for further lending.

[BreadOffTheTable]

67Dino said:

There’s no regular monitoring, but when you renew your current fixed rate or other discount deal, it could well be looked at. If your rating was poor, this could mean you wouldn’t then be able to get a new deal with this bank or a mortgage at another one.

However, as long as you’re paying your mortgage on time, Banks generally won’t rescind your mortgage (contrary to popular belief they really don’t want to evict people unless they have to). Most likely is that when your current deal ends, you get put on a Standard Variable Rate mortgage which is, rather unhelpfully, significantly pricier.

(I’ve said ‘you’ but appreciate this was not your situation)

Edited by 67Dino on Saturday 5th February 22:47

This is almost entirely incorrect. Mortgage lenders don't credit score customers reaching the end of their deal who are looking to switch to a new deal. Hope you don't work in mortgages Dino!

OP best bet in any case is to speak to a broker for independent whole of market advice.

[btdk5]

67Dino said:

There’s no regular monitoring, but when you renew your current fixed rate or other discount deal, it could well be looked at. If your rating was poor, this could mean you wouldn’t then be able to get a new deal with this bank or a mortgage at another one.

However, as long as you’re paying your mortgage on time, Banks generally won’t rescind your mortgage (contrary to popular belief they really don’t want to evict people unless they have to). Most likely is that when your current deal ends, you get put on a Standard Variable Rate mortgage which is, rather unhelpfully, significantly pricier.

(I’ve said ‘you’ but appreciate this was not your situation)

Edited by 67Dino on Saturday 5th February 22:47

Why post this? It’s simply not true.

[67Dino]

btdk5 said:

67Dino said:

There’s no regular monitoring, but when you renew your current fixed rate or other discount deal, it could well be looked at. If your rating was poor, this could mean you wouldn’t then be able to get a new deal with this bank or a mortgage at another one.

However, as long as you’re paying your mortgage on time, Banks generally won’t rescind your mortgage (contrary to popular belief they really don’t want to evict people unless they have to). Most likely is that when your current deal ends, you get put on a Standard Variable Rate mortgage which is, rather unhelpfully, significantly pricier.

(I’ve said ‘you’ but appreciate this was not your situation)

Edited by 67Dino on Saturday 5th February 22:47

Why post this? It’s simply not true.

I posted it because I worked in the Banking industry and it is my understanding of the approach. I did say ‘could be looked at’ as some do credit check, but maybe wasn’t clear that many don’t (although with Covid and the economy atm, policies may yet change). Apologies if this was unclear.

The rest I believe is accurate but always happy to be corrected if someone knows better. Entirely possible I am out of date or the approach is not the same elsewhere.

Edited by 67Dino on Tuesday 8th February 23:47

[BreadOffTheTable]

67Dino said:

btdk5 said:

67Dino said:

There’s no regular monitoring, but when you renew your current fixed rate or other discount deal, it could well be looked at. If your rating was poor, this could mean you wouldn’t then be able to get a new deal with this bank or a mortgage at another one.

However, as long as you’re paying your mortgage on time, Banks generally won’t rescind your mortgage (contrary to popular belief they really don’t want to evict people unless they have to). Most likely is that when your current deal ends, you get put on a Standard Variable Rate mortgage which is, rather unhelpfully, significantly pricier.

(I’ve said ‘you’ but appreciate this was not your situation)

Edited by 67Dino on Saturday 5th February 22:47

Why post this? It’s simply not true.

I posted it because I worked in the Banking industry and it is my understanding of the approach. I did say ‘could be looked at’ as some do credit check, but maybe wasn’t clear that many don’t (although with Covid and the economy atm, policies may yet change). Apologies if this was unclear.

The rest I believe is accurate but always happy to be corrected if someone knows better. Entirely possible I am out of date or the approach is not the same elsewhere.

Edited by 67Dino on Tuesday 8th February 23:47

Still wrong I'm afraid. It is never looked at as part of a regular like for like Product Switch. Affordability and credit are only checked if the customer is taking a Further Advance or seeking to reduce term etc.

Don't think it's a case of being out of date as it hasn't changed at least since MMR. Maybe you're just helping OP with Cunningham's Law.

[67Dino]

BreadOffTheTable said:

67Dino said:

btdk5 said:

67Dino said:

There’s no regular monitoring, but when you renew your current fixed rate or other discount deal, it could well be looked at. If your rating was poor, this could mean you wouldn’t then be able to get a new deal with this bank or a mortgage at another one.

However, as long as you’re paying your mortgage on time, Banks generally won’t rescind your mortgage (contrary to popular belief they really don’t want to evict people unless they have to). Most likely is that when your current deal ends, you get put on a Standard Variable Rate mortgage which is, rather unhelpfully, significantly pricier.

(I’ve said ‘you’ but appreciate this was not your situation)

Edited by 67Dino on Saturday 5th February 22:47

Why post this? It’s simply not true.

I posted it because I worked in the Banking industry and it is my understanding of the approach. I did say ‘could be looked at’ as some do credit check, but maybe wasn’t clear that many don’t (although with Covid and the economy atm, policies may yet change). Apologies if this was unclear.

The rest I believe is accurate but always happy to be corrected if someone knows better. Entirely possible I am out of date or the approach is not the same elsewhere.

Edited by 67Dino on Tuesday 8th February 23:47

Still wrong I'm afraid. It is never looked at as part of a regular like for like Product Switch. Affordability and credit are only checked if the customer is taking a Further Advance or seeking to reduce term etc.

Don't think it's a case of being out of date as it hasn't changed at least since MMR. Maybe you're just helping OP with Cunningham's Law.

How embarrassing. Thanks for putting me right.