fixed rate mortgage

MADMUMOFFIVE

Hi,
I have read 3 pages of threads and dont think I can find all of the answers to my questions, so hope you dont mind me posting a new thread.

I took out a 2 year fixed rate with the Hali which finishes in June, so I obviously intend to see it to the end, but am struggling with the decision on what to do next. I have read that I could let it finish and then carry on with their current SVR but that could be 'dangerous' for me if the rates shoot up as I cannot afford anything more than I currently pay. I think I personally need to start another fixed rate immediately and dont think I have the option to 'shop around':

Info: 2005 House value £225,000 - mortgage £110,000 on repayments of £728. Now certain things have changed since I took out the mortgage: House value dropped by approx £10,000 and I lost my full time job paying £12,000 pa and now work parttime earning £4800 pa!! So I am anxious that the bank, or any bank for that matter, will consider me to be a 'safe' bet when offering me a new mortgage deal. I have never missed a payment so I suppose I have that in my favour?

Could anyone advise me?
Thanks

beecher

You're not going to get a deal elsewhere on that salary multiple. You're paying twice as much as you're earning unless there's a typo. I don't understand how it added up when you were earning £12,000 either.

You're options are to sit on the SVR or to take out a Halifax deal.

https://www.halifax.co.uk/mortgages/newdeal.asp

will show you what's available. Halifax won't credit score you or look at your income.

_Andy_

Your only option will be to stay with your current lender (due to income).
You will need to speak to them to find out your options in terms of rates.
As you're already with them, they won't need to re-assess income (unless you wanted to increase the borrowing).
Hope this helps.

MADMUMOFFIVE

Thanks to both Beecher and Andy, you have both been very helpful and yes I will contact the Hali and have a chat, no I dont need any extra money, just a new deal and hopefully they will offer me another fixed rate, as I feel secure in knowing what amount I need to raise each month. No type error on figures (sadly). I have other income, in that I have working and family tax credits, maintenance, family allowance, all of which - along with my working income, were taken into consideration when working out the 'salary multiples'. I am relieved that the Hali 'shouldnt' look into my income when considering a new deal, because obviously it dosnt add up, so long as they can see that I have never missed a payment I suppose that is the most important thing to them?!
Thanks again, you have confirmed what I had thought and given me confidence to ring them up and speak to them rather than hiding until the decision was upon me!

beecher

No worries, and don't be concerned about phoning them up as they've always been really helpful when I've called them. Your LTV is not far off 50% and you haven't missed a payment so from their point of view you're v low risk.

If you feel the need you can probably book a fixed rate from the end of the month, with the proviso that you can move to a better one if it comes up. This is certainly what people were able to do at the end of the year so is worth asking about.