Mortgage fixed term ending, but situation changed...
Discussion
Our fixed-term mortgage is coming to an end in early November.
We renewed online with our provider a couple of years ago - rate was competitive and it was pretty much hassle-free. We probably could have got an even better deal with another provider if we’d stepped away from them, but there was a stumbling block.
Basically our work situation has changed in the last three years. My fiancée is now a part-time worker (not f/t manager) and I’m casually employed as a supply teacher, rather than being contracted. I’m sure our provider would have kittens if we had mentioned the change in work situations upon renewal, but as it was online, we just clicked the ‘no personal circumstances have changed’ box.
Thing is, we’re not worried. We can still comfortably pay the mortgage and other outgoings each month, and have a healthy nest egg which we could dip into if there’ was a particularly lean month. We’re pretty sensible with money, don’t have any loans and own our cars outright etc.
I’m tempted to do the same method for renewal in October (assuming it's still feasible/competitive) although it would be good to tie in for more than a couple of years.
Is there anyone on here who works in mortgage lending? As I said earlier, I fear we’d struggle to get a half-decent mortgage deal from a new provider as we don’t have much in the way of proof that our projected monthly earnings will be solid. I’m just trying to gauge whether we’d should quietly continue what we’re doing, or whether we should stick our heads above the parapet, admit the financial situation, but offer say 12 months of earnings vs. outgoings paperwork to prove we are a sound option to be given a renewed mortgage deal.
As an aside, we are slightly tempted to sell the house and buy another project, but assume that we’ll be told to FRO by a lender with our current work situation.
Any advice welcomed. TIA.
We renewed online with our provider a couple of years ago - rate was competitive and it was pretty much hassle-free. We probably could have got an even better deal with another provider if we’d stepped away from them, but there was a stumbling block.
Basically our work situation has changed in the last three years. My fiancée is now a part-time worker (not f/t manager) and I’m casually employed as a supply teacher, rather than being contracted. I’m sure our provider would have kittens if we had mentioned the change in work situations upon renewal, but as it was online, we just clicked the ‘no personal circumstances have changed’ box.
Thing is, we’re not worried. We can still comfortably pay the mortgage and other outgoings each month, and have a healthy nest egg which we could dip into if there’ was a particularly lean month. We’re pretty sensible with money, don’t have any loans and own our cars outright etc.
I’m tempted to do the same method for renewal in October (assuming it's still feasible/competitive) although it would be good to tie in for more than a couple of years.
Is there anyone on here who works in mortgage lending? As I said earlier, I fear we’d struggle to get a half-decent mortgage deal from a new provider as we don’t have much in the way of proof that our projected monthly earnings will be solid. I’m just trying to gauge whether we’d should quietly continue what we’re doing, or whether we should stick our heads above the parapet, admit the financial situation, but offer say 12 months of earnings vs. outgoings paperwork to prove we are a sound option to be given a renewed mortgage deal.
As an aside, we are slightly tempted to sell the house and buy another project, but assume that we’ll be told to FRO by a lender with our current work situation.
Any advice welcomed. TIA.
Nick-y7yhy said:
Our fixed-term mortgage is coming to an end in early November.
We renewed online with our provider a couple of years ago - rate was competitive and it was pretty much hassle-free. We probably could have got an even better deal with another provider if we’d stepped away from them, but there was a stumbling block.
Basically our work situation has changed in the last three years. My fiancée is now a part-time worker (not f/t manager) and I’m casually employed as a supply teacher, rather than being contracted. I’m sure our provider would have kittens if we had mentioned the change in work situations upon renewal, but as it was online, we just clicked the ‘no personal circumstances have changed’ box.
Thing is, we’re not worried. We can still comfortably pay the mortgage and other outgoings each month, and have a healthy nest egg which we could dip into if there’ was a particularly lean month. We’re pretty sensible with money, don’t have any loans and own our cars outright etc.
I’m tempted to do the same method for renewal in October (assuming it's still feasible/competitive) although it would be good to tie in for more than a couple of years.
Is there anyone on here who works in mortgage lending? As I said earlier, I fear we’d struggle to get a half-decent mortgage deal from a new provider as we don’t have much in the way of proof that our projected monthly earnings will be solid. I’m just trying to gauge whether we’d should quietly continue what we’re doing, or whether we should stick our heads above the parapet, admit the financial situation, but offer say 12 months of earnings vs. outgoings paperwork to prove we are a sound option to be given a renewed mortgage deal.
As an aside, we are slightly tempted to sell the house and buy another project, but assume that we’ll be told to FRO by a lender with our current work situation.
Any advice welcomed. TIA.
To make a decision, you'd need to know;We renewed online with our provider a couple of years ago - rate was competitive and it was pretty much hassle-free. We probably could have got an even better deal with another provider if we’d stepped away from them, but there was a stumbling block.
Basically our work situation has changed in the last three years. My fiancée is now a part-time worker (not f/t manager) and I’m casually employed as a supply teacher, rather than being contracted. I’m sure our provider would have kittens if we had mentioned the change in work situations upon renewal, but as it was online, we just clicked the ‘no personal circumstances have changed’ box.
Thing is, we’re not worried. We can still comfortably pay the mortgage and other outgoings each month, and have a healthy nest egg which we could dip into if there’ was a particularly lean month. We’re pretty sensible with money, don’t have any loans and own our cars outright etc.
I’m tempted to do the same method for renewal in October (assuming it's still feasible/competitive) although it would be good to tie in for more than a couple of years.
Is there anyone on here who works in mortgage lending? As I said earlier, I fear we’d struggle to get a half-decent mortgage deal from a new provider as we don’t have much in the way of proof that our projected monthly earnings will be solid. I’m just trying to gauge whether we’d should quietly continue what we’re doing, or whether we should stick our heads above the parapet, admit the financial situation, but offer say 12 months of earnings vs. outgoings paperwork to prove we are a sound option to be given a renewed mortgage deal.
As an aside, we are slightly tempted to sell the house and buy another project, but assume that we’ll be told to FRO by a lender with our current work situation.
Any advice welcomed. TIA.
- Whats being offered by the current lender
- Whats available from other lenders and the delta between the two
- If the difference is significant, will the new lender accept your application (which is near impossible to confirm based on the information provided)
Sarnie - thanks for the reply. I'll get an online quote from our current lender this pm.
I'm just looking at the 'value of your property' box on the application. When we applied for our two year fixed deal in 2016, the 'assumed value of the property' was around the £185,000 mark. If we were to sell, we wouldn't let it go for less than £215,000. Do I need to state the higher figure, or is it based on original purchase price (approx. £155,000 in 2011)?
I'm just looking at the 'value of your property' box on the application. When we applied for our two year fixed deal in 2016, the 'assumed value of the property' was around the £185,000 mark. If we were to sell, we wouldn't let it go for less than £215,000. Do I need to state the higher figure, or is it based on original purchase price (approx. £155,000 in 2011)?
Nick-y7yhy said:
Sarnie - thanks for the reply. I'll get an online quote from our current lender this pm.
I'm just looking at the 'value of your property' box on the application. When we applied for our two year fixed deal in 2016, the 'assumed value of the property' was around the £185,000 mark. If we were to sell, we wouldn't let it go for less than £215,000. Do I need to state the higher figure, or is it based on original purchase price (approx. £155,000 in 2011)?
They will be using an index linked valuation of the property......if you wanted a figure £30k higher you would need to request a physical valuation.....which may trigger a full underwrite.......I'm just looking at the 'value of your property' box on the application. When we applied for our two year fixed deal in 2016, the 'assumed value of the property' was around the £185,000 mark. If we were to sell, we wouldn't let it go for less than £215,000. Do I need to state the higher figure, or is it based on original purchase price (approx. £155,000 in 2011)?
Right, current lender could offer two deals:
2 year fixed @ 2.745 initial rate
5 year fixed @3.04 initial rate. Both have no product fee.
Thing is, monthly payment is lower than I'd like - I'd prefer to pay more per month and cut down the remaining 17 year term. I guess we could overpay a lump sum (as we did 12 months ago), although it still doesn't shorten the term!
2 year fixed @ 2.745 initial rate
5 year fixed @3.04 initial rate. Both have no product fee.
Thing is, monthly payment is lower than I'd like - I'd prefer to pay more per month and cut down the remaining 17 year term. I guess we could overpay a lump sum (as we did 12 months ago), although it still doesn't shorten the term!
Nick-y7yhy said:
I guess we could overpay a lump sum (as we did 12 months ago), although it still doesn't shorten the term!
My old lender (nationwide) allowed me to set a preference for how the over payment was used. Might be worth asking them if you haven't already. IIRC by default over £500 reduced term, under that reduced payments.Nick-y7yhy said:
Right, current lender could offer two deals:
2 year fixed @ 2.745 initial rate
5 year fixed @3.04 initial rate. Both have no product fee.
Thing is, monthly payment is lower than I'd like - I'd prefer to pay more per month and cut down the remaining 17 year term. I guess we could overpay a lump sum (as we did 12 months ago), although it still doesn't shorten the term!
Whats your LTV?2 year fixed @ 2.745 initial rate
5 year fixed @3.04 initial rate. Both have no product fee.
Thing is, monthly payment is lower than I'd like - I'd prefer to pay more per month and cut down the remaining 17 year term. I guess we could overpay a lump sum (as we did 12 months ago), although it still doesn't shorten the term!
Nick-y7yhy said:
Just used the calculator and it’s churning out at 39%.
At that LTV, 2 years rates with no arrangement fees from 1.84% upwards.....1.99% for 5 year rates............so the rates you've been offered are pretty poor in comparison but thats to be expected from current lender retention products.Whether you could secure any of those rates is unknown though.......
slipstream 1985 said:
I just got 2.69% 5 year fix on a ltv of 56%. I could have gone variable but for the saving of £50 a month cheaper vs knowing the ammount and the peace of mind it was a no brainer for me. Also with brexit looming in a years time and likely turmoil for 2-3 years I wanted to be sure.
Could I ask who that was with? Nick-y7yhy said:
slipstream 1985 said:
I just got 2.69% 5 year fix on a ltv of 56%. I could have gone variable but for the saving of £50 a month cheaper vs knowing the ammount and the peace of mind it was a no brainer for me. Also with brexit looming in a years time and likely turmoil for 2-3 years I wanted to be sure.
Could I ask who that was with? djc206 said:
We took 1.94% fixed for 5 years at 75.2% LTV in September last year from Barclays as a retention rate, they’re not always bad! Glad I fixed for 5 now.
Thats good. I maybe could have got better with another provider but there was no fee being my own bank and staying with them.Am I missing something, or is the OP witholding information from the lender to obtain a mortgage under deceit? (strong word but I couldn't think of another one)
If it was a brand new application and the applicants had changed to part-time and casual work halfway through the process they would be told to fess up, surely?
If it was a brand new application and the applicants had changed to part-time and casual work halfway through the process they would be told to fess up, surely?
Apologies for the thread hijacking
Looking at funding an extension
Currently owe £50k on a £200k house - Mortgage with First Direct,
Looking for a remortgage to £100k (+£50k) … £100K is less than x3 income
FD are offering 10Y fixed at 2.79% is this a good rate? HSBC are offering 2.49% but charge a fee to overpay where as FD are fee free and I do intend to overpay randomly
Thanks for the free financial advice
Looking at funding an extension
Currently owe £50k on a £200k house - Mortgage with First Direct,
Looking for a remortgage to £100k (+£50k) … £100K is less than x3 income
FD are offering 10Y fixed at 2.79% is this a good rate? HSBC are offering 2.49% but charge a fee to overpay where as FD are fee free and I do intend to overpay randomly
Thanks for the free financial advice
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