Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • April147
    • By April147 13th Oct 16, 3:43 PM
    • 4Posts
    • 2Thanks
    April147
    Reviewing mortgage at end of fixed term advice
    • #1
    • 13th Oct 16, 3:43 PM
    Reviewing mortgage at end of fixed term advice 13th Oct 16 at 3:43 PM
    Hi

    I am coming to the end of the fixed rate period on my mortgage which is with first direct. I was planning to switch to a new two year fixed rate which would save me £75 a month. During the conversation with a FD rep to confirm this, I was persuaded to talk to one of their mortgage advisors as I asked a couple of questions about potentially changing the terms of the mortgage - given that I am a single parent reducing the mortgage payments by extending the repayment period would help me (e.g. from 22 years as it is currently to 25). I have an appointment booked on Monday to discuss this. I am worried however because I currently have a joint mortgage with my ex. Since we were approved for the mortgage, my partner and I have separated and as such out joint outgoings are much higher as he rents a property. He also doesn't manage his money well and is over-drawn. The advisor will look at our bank accounts as part of the review on Monday and see all of this which concerns me. I don't even think that we would now qualify for the mortgage we currently have. I certainly wouldn't qualify for the mortgage on my own part-time wages. I'm just concerned this conversation could disadvantage me in any way? I hope this makes sense! I'm basically not sure whether to just go down the straightforward route and agree a new fixed rate without talking to the mortgage advisor about changing the terms? Any advice would be much appreciated. I hope my query makes sense!


    Thank you




    Many thanks
Page 1
    • muhandis
    • By muhandis 13th Oct 16, 4:09 PM
    • 231 Posts
    • 86 Thanks
    muhandis
    • #2
    • 13th Oct 16, 4:09 PM
    • #2
    • 13th Oct 16, 4:09 PM
    In your place my first option would be to do a non-advised fully online product switch, which is offered by most banks these days. In most cases there is no affordability check or credit check done for this option.

    However, this option is usually only offered as long as there is no change requested in the amount borrowed or term of the mortgage.

    From what I can see, discussing a change in term has triggered the suggestion to speak to an advisor and will in all probability involve a new affordability check.

    Given the circumstances you have described, I would check and see if you can do a non-advised product switch online and avoid the risk of failing an affordability assessment.

    Hi

    I am coming to the end of the fixed rate period on my mortgage which is with first direct. I was planning to switch to a new two year fixed rate which would save me £75 a month. During the conversation with a FD rep to confirm this, I was persuaded to talk to one of their mortgage advisors as I asked a couple of questions about potentially changing the terms of the mortgage - given that I am a single parent reducing the mortgage payments by extending the repayment period would help me (e.g. from 22 years as it is currently to 25). I have an appointment booked on Monday to discuss this. I am worried however because I currently have a joint mortgage with my ex. Since we were approved for the mortgage, my partner and I have separated and as such out joint outgoings are much higher as he rents a property. He also doesn't manage his money well and is over-drawn. The advisor will look at our bank accounts as part of the review on Monday and see all of this which concerns me. I don't even think that we would now qualify for the mortgage we currently have. I certainly wouldn't qualify for the mortgage on my own part-time wages. I'm just concerned this conversation could disadvantage me in any way? I hope this makes sense! I'm basically not sure whether to just go down the straightforward route and agree a new fixed rate without talking to the mortgage advisor about changing the terms? Any advice would be much appreciated. I hope my query makes sense!

    Thank you


    Many thanks
    Originally posted by April147
    • April147
    • By April147 13th Oct 16, 4:10 PM
    • 4 Posts
    • 2 Thanks
    April147
    • #3
    • 13th Oct 16, 4:10 PM
    • #3
    • 13th Oct 16, 4:10 PM
    thank you for this, that is what I was thinking. What would happen if I failed the affordability check? Just so I know what the worst case scenario is!
    • muhandis
    • By muhandis 13th Oct 16, 4:24 PM
    • 231 Posts
    • 86 Thanks
    muhandis
    • #4
    • 13th Oct 16, 4:24 PM
    • #4
    • 13th Oct 16, 4:24 PM
    I think the worst case scenario in this case is that you aren't able to switch products and are put on the higher SVR at the end of the fix.

    Getting a rough sense of affordability in the eye of a lender is not particularly complicated. You could go to the HSBC (I just can't seem to find the one for FD) detailed intermediary affordability calculator https://portal.intermediaries.hsbc.co.uk/affordabilitycalculator/affordabilitycalculatorpage.php and put in the numbers there to check.

    If it shows that your current situation fails to meet affordability requirements by a lot, I would cancel the advisor appointment and go for the small win of a £75/month saving of an online non-advised product switch for now.

    Hope that helps.

    thank you for this, that is what I was thinking. What would happen if I failed the affordability check? Just so I know what the worst case scenario is!
    Originally posted by April147
    • Thrugelmir
    • By Thrugelmir 13th Oct 16, 4:29 PM
    • 51,295 Posts
    • 43,110 Thanks
    Thrugelmir
    • #5
    • 13th Oct 16, 4:29 PM
    • #5
    • 13th Oct 16, 4:29 PM
    Kicking the can of home ownership down the road isn't going to help you in the longer term. If your ex is in financial distress then could be your hard earned money that's at risk.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • Glover1862
    • By Glover1862 13th Oct 16, 4:36 PM
    • 172 Posts
    • 99 Thanks
    Glover1862
    • #6
    • 13th Oct 16, 4:36 PM
    • #6
    • 13th Oct 16, 4:36 PM
    You would have been better off not contacting them, just ask for a product switch, sometimes called a execution only service. You'll have to chose your own new product and won't benefit from some of of the protections such as miselling. I'd cancel any advices based appointment and ask either to switch on line or by phone. If you fail affordability,which sounds like you will then just keep away from it otherwise they'll probably end up putting you on a standard variable rate. Make sure you can afford t though otherwise you're just kicking the problem further down.
    • April147
    • By April147 13th Oct 16, 4:36 PM
    • 4 Posts
    • 2 Thanks
    April147
    • #7
    • 13th Oct 16, 4:36 PM
    • #7
    • 13th Oct 16, 4:36 PM
    That's really helpful advice thank you very much. I think I will cancel the advisor and go for the small £75 saving as you suggest.
    • SavingSteve
    • By SavingSteve 13th Oct 16, 7:20 PM
    • 476 Posts
    • 205 Thanks
    SavingSteve
    • #8
    • 13th Oct 16, 7:20 PM
    • #8
    • 13th Oct 16, 7:20 PM
    So you're happy to continue paying this mortgage and having your ex on named on the property? What happens if he wants to sell?
    • April147
    • By April147 13th Oct 16, 8:15 PM
    • 4 Posts
    • 2 Thanks
    April147
    • #9
    • 13th Oct 16, 8:15 PM
    • #9
    • 13th Oct 16, 8:15 PM
    We have an amicable separation and he cant make me sell as we have young children. The mortgage is affordable too so I should hit problems down the line.


    The advice has been really helpful and I have cancelled the mortgage advisor appointment and am going down the execution only route. I have to talk to someone to confirm the rate change next week but hoping it will be straightforward!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,705Posts Today

5,932Users online

Martin's Twitter