Trouble ahead??

joAnn

My current mortgage deal with the Nationwide is due to expire in December. Due to circumstances beyond my control, I have had to change jobs and my salary has dropped massively from what it was when I originally applied for the mortgage 2 years ago. I am very worried about impact the drop in my salary will have as I guess it means I will not be in a position to look around for a better deal when the time comes. In this light would it be wise to just stick with the Nationwide and go with the deal they offered for the end of the discounted term? Paying the mortgage every month is extremely tight, but just about managable.
My mortgage is a - 0.13% Tracker. The remaining amount on 31 Dec 2007 was £130, 539.00, so will be a bit less on 31 Dec 2008.

Is there anything else I can do to get a better deal? I had thought about asking a trusted friend to go on the mortgage with me, is that something I can realistically consider?

Please help!

dunstonh

If you stick with your current lender, you are just buying a new deal. They wont credit score you or make you apply again.

Nationwide are a good lender and you should be able to get a good enough deal that saves the need to shop around.

luckyfool

i) You can get a new deal from Nationwide without them reassessing your circumstances
ii) Nationwide will offer you a deal which is pretty much as good as anything else out there on the market
iii) You should plan on your interest rate increasing by at least 0.7 -0.8% if you choose to go with a tracker on your new deal.

There is no benefit to adding your friend on and moving to a new lender, you are not going to get anything significantly better than what Nationwide will give you.

joAnn

Thanks for that,

so you don't believe that the Nationwide will want to reassess my financial status and income in order to either:

A) offer me another deal or product with them,
or
just let the mortgage revert to the undiscounted rate?

????

luckyfool

joAnn,

They just won't. It will not come up at all unless you ask to borrow more money in which case they will just say forget it when you give them your new income details.

As long as you are a customer in good standing (been paying your mortgage), then they will allow you to switch to another product without any hassle at all.

joAnn

Thanks for the advice - just one more question, if Nationwide offers me a new product that I simply cannot afford, is my only option going to be to try find a better deal with another mortgage lender - apart from trying to sell my place?

Ian_Griffiths_Halifax

You probably wont get a better deal elsewhere that would be worth moving to. Consider changing part or all of your mortgage to Interest Only if there are no affordable deals available to you. If you stick with Nationwide you can then Overpay by up to £500 per month (on all the deals I've seen, but check your own) whenever you can afford.

Are you expecting your income to increase in the future as most people should really look at having a repayment mortgage long term.