Advice needed for son

jacnorm

My son and daughter in law are coming to the end of their fixed rate mortgage (december) and they are concerned now about trying to approach other lenders as my son is a self employed builder and since things have gone down hill in the building trade he has very little coming in. She works part time and they get taxcredits but due to his fall in earnings they have missed four payments on his trade accounts. The balance of these will be clear next month but will it still show as defaults and are they likely to struggle to get a better rate ?
I have never bought a house so I cannot advise them.
Thanks Jacqui

PasturesNew

It will come down to basic maths. What the house is valued at, what the loan-to-value ratio is, how much he's earning, how the lender/s view his earnings versus the first parts.

But the SVR is quite cheap now and it might be cheaper for them in December than they are currently paying.

More details/figures would be needed to compare what they have now -v- what they might be paying in December.

G_M

What fixed rate is he on? What standard variable rate will he be switched to when the fixed rate ends?

Chances are the costs of a new fixed rate ( admin/legal fees etc) will mean staying on the standard rate is cheaper - though without figures it'simpossible to say.

If in doubt, see an IFA (independant, not tied to a bank!)

Richard_Webster

Obviously it will depend on the particular rates etc that are being paid at the moment, but most standard variable rates are lower than the fixed rates so in a lot of cases there is no point in changing. I think there is the idea somewhere that when your fixed rate comes to an end you must remortgage. Why?

Why spend all the money on admin fees and valuations etc when it will probably be cheaper to stay with the same lender, unless it really is a lender from hell?