notifying lender of change of cirumstances - will they revoke loan?!

[Deleted User]

Hi there, hope you can help!

Our fixed term 2 year deal with 1st Direct ends next May. When we took out the mortgage I was employed and my husband was self employed. Our income easily covered the loan.

Earlier this year I was made redundant, 5 days before taking maternity leave. The same week, my husband took a full time job. I have redundancy insurance which is paying out and will do until next Jan (unless I find a job in the meantime). As such our combined net income is actually the same, just made up differently.

I didnt notify 1st Direct of this change (didnt cross my mind!!) but we want to move house, to a house of equal value and just port over the mortgage.

My concern is that they won't want to lend given that my income is down to an insurance payout, and my husband's sole income won't qualify for the multiple needed (3.5 x salary) to cover the original loan.

Anyone know if I call 1st Direct and explain and they won't lend on a new house, will they revoke our current loan on our existing house, since technically we may not meet their lending criteria for the orignal loan??

Thanks!!

Mrs_Bumble

They won't revoke the existing loan and there was no reason that you had notify them of your change of circumstances unless you couldn't meet your obligation, but if you think that your current income doesn't meet the affordability then they won't allow you to port.

opinions4u

I didnt notify 1st Direct of this change (didnt cross my mind!!) but we want to move house, to a house of equal value and just port over the mortgage.

My concern is that they won't want to lend given that my income is down to an insurance payout, and my husband's sole income won't qualify for the multiple needed (3.5 x salary) to cover the original loan.

You're right to be concerned. Many redundancy policies are linked to s specific mortgage. Some may cease to pay out if you repay a mortgage and take out a new one.

They don't have to lend. A portable mortgage product isn't a right to a mortgage if you choose to move house. It's a right to a particular product if you're accepted for a mortgage.

Anyone know if I call 1st Direct and explain and they won't lend on a new house, will they revoke our current loan on our existing house, since technically we may not meet their lending criteria for the orignal loan??

As long as you are maintaining your contracted monthly payment, then there is absolutely no problem.