Mortgage renewal now I am a student

NatashaRose · 18 February 2018 at 9:25PM

Hi All,
I hope someone can help me I feel quite uneasy about my mortgage situation.
I bought a house myself nearly two years ago it was 70K and I put down a 7k deposit, so I have a mortgage with TSB for the remainder.
When I took out the mortgage I was working full time in an office and I was salaried on 16k. Now, shortly after I bought the house I was offered a scholarship to undertake a PhD study full time. This was something I had hoped for but never actually expected to happen. So, my problem is now my mortgage is up for renewal in June and I do not actually have any 'income' as my scholarship is a tax-free bursary of 14k (so I get about the same as I used to monthly). What is also problematic is that it is a fixed term scholarship that will cease next August, following which I will of course find work and continue mortgage payments.

Now I am scared that if I ignore the renewal I will automatically be transferred to a not-so-great mortgage rate that I possibly will not be able to afford? Or if I go into TSB and talk to them about this they will refuse me a renewal and I literally don't know what to do otherwise.. Other banks I'm sure will not touch my situation, and I I so scared I will be forced to sell the house to pay back the bank.

Any advise would be greatly appreciated,
Thank you, Nat

Edi81 · 18 February 2018 at 9:39PM

When you say !!!8220;renewal!!!8221; you mean your fixed rate is ending.

You have a mortgage and the worst that can happen is that you will revert to SVR.

You will be able to switch to a new fixed rate with TSB which as long as you do it online and this will not require any further checks or questions on your income.

If you log into your mortgage account you should be able to see the rates you can switch to n

Thrugelmir · 18 February 2018 at 9:46PM

Go online and choose a new product from those on offer to you. Given your circumstances that's your only option.

Now, shortly after I bought the house I was offered a scholarship to undertake a PhD study full time. This was something I had hoped for but never actually expected to happen.

Certainly wouldn't mention this. As obvious this didn't just happen by chance.

NatashaRose · 18 February 2018 at 10:01PM

Thanks guys!
Will the bank not make any checks to my earnings. If they call my previous employer they will then find out I no longer work there? Wouldn't this be seen as fraud?
I, of course, am keeping up with repayments, so I have no difficulty with this.

Certainly wouldn't mention this. As obvious this didn't just happen by chance.

Yes it was not an accident, however, when I took out the mortgage I had not even thought about applying, and certainly did not think i'd be accepted.

Also, as an aside, what would happen if I wanted to let the property (and move into rented in a different area) in the future, as it is currently a homeowners mortgage. Would the bank be opposed to something like this?

Thrugelmir · 18 February 2018 at 10:25PM

NatashaRose wrote: »

Will the bank not make any checks to my earnings. If they call my previous employer they will then find out I no longer work there? Wouldn't this be seen as fraud?
I, of course, am keeping up with repayments, so I have no difficulty with this.

Applying online requires the lender to perform no checks. If you make contact then the lender is obliged when giving advice to ascertain your current circumstances.

Also, as an aside, what would happen if I wanted to let the property (and move into rented in a different area) in the future, as it is currently a homeowners mortgage. Would the bank be opposed to something like this?

Consent to let is granted on case by case basis. One issue
is could you afford the mortgage if the tenant defaulted.

NatashaRose · 19 February 2018 at 11:44AM

Ah fantastic, thank you so much Thrugelmir! I really appreciate the advice.

andrewmp · 19 February 2018 at 12:35PM

Your mortgage rate will increase to 3.99% once your deal ends. Still a historically low rate so I wouldn't worry too much about it for now.

For example... If you're paying say £300 now at 3% it'll increase to £335 at 3.99%.

NatashaRose · 19 February 2018 at 9:07PM

Hi All,
I have been on the TSB site and it looks like I cannot transfer to another Fixed Rate deal with TSB online unless I reapply for a mortgage (getting an online mortgage promise) which is subject to the same strict mortgage criteria checks they take with the initial lending.
Does this mean I have to stay with TSB on the Standard Variable Rate until I get another salaried job after graduating?

Thrugelmir · 19 February 2018 at 9:50PM

Is this where you looked?

https://secure.mortgages.tsb.co.uk/mortgage/Mortgage_Switch.asp

NatashaRose · 19 February 2018 at 10:53PM

No, that was not the page that was coming up on my online banking page. But I cannot post links because I have a new account.

The page you just posted looks more like what I was expecting. So I guess now I'll wait until my my fixed mortgage deal expires and apply using the form you posted?
When looking on my account it states that I have a "Fixed Rate mortgage until 30 Apr 2018" which is when I assume the fixed deal will expire, not coinciding with my 'move in date' two years ago that was in June.

KTD10 · 20 February 2018 at 11:13AM

Is your stipend above £15,000? If so, then you may be able to get a mortgage with Platform. My husband and I got a mortgage with them and we are both on stipends. I know one of the conditions was that at least one of our stipends was over the £15k mark which mine is. I imagine there are other conditions too and platform can only be accessed through a broker so might be worth having a chat with a fee free broker to see what your options are.

Mortgage renewal now I am a student

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