will existing lender re-do checks if i fix with them again?

libbyc3

Hi,

looking for some advice!
me and OH bought our house in 2003 for 250k so prob worth about that now. we have 120k outstanding on the mortgage and our fix is up in April.
my OH lost his job in sept last year and although has another one it is a quarter of what he was earning before!!! - our combined income is around 10k
my question is, obviously we can't go to any other lender without being laughed at and i really want a 10year fix (peace of mind whilst becoming a student). we are with Abbey and they are offering them at the mo.
if I phoned and asked to go on the 10 year when current fix ends, are they going to want to see all our proof of incomes again or will they just look at our payment record - which is all up to date and on time?
thanks for any advice

HangTime

Our lender (co-op) required proof of income again when we ported our mortgage to a new property less than a year after taking out the mortgage, so there's a fair chance it will be required (especially as it's a completely new product you are moving on to).

Obviously, it may be different with the Abbey, but if you think about it, it'd be lunacy for any lender to assume that people's circumstances haven't changed in 5 years, especially in the current climate. For all they know you may both have lost your jobs even if you are still keeping up the repayments for now.

_Andy_

If you're staying with the same lender in the same property and aren't wanting to borrow any more, they won't need to do any checks or need proof of income.

~Beanie~

No, I took a new product with the Halifax about 6 months and they did no checks at all.

Pay_ALARP

We are now on Abbey's SVR after our product finished and in January I contacted them about moving to another one of their products and was told that we would have to go through all the hoops again.

I suppose in a way it is reasonable because it is a new contract and lets be fair, more opportunity for Abbey to make extra money off it's customers.

How true this is going to be of your situation - I don't know so perhaps best ask them what they will do. Personally I always phone their call centre a couple of times to make sure I am getting the same answer from everyone!

Pee

I changed products with NatWest and they did not check. I thought this was because of payments being made on time and the fairly high equity in the property, which equally apply to you. Sounds like they could do though, so good luck.

skintandsad

I cannot confirm exactly what your lender will do, however, I was a mortgage underwriter some years ago, so base my knowledge on policy then.

To transfer an existing loan to a fixed rate, the only real criteria was the the loan must fall within a certain loan to value ratio, ie 90% max, and that the existing loan must be up to date without arrears.

A revaluation was requested (updated by a valuer without necessity to revisit the property) for which an appropriate fee was charged, plus any fees relating to securing the fixed rate product.

No references were required - the only reference we needed was our own by looking at payment history.

HTH