Change in circumstances?

littlekitty_2

Should you inform a mortgage lender of a change in circumstances if it doesn't affect your ability to pay? i.e. salary decrease?

Can a mortgage company revoke a mortgage?

Reason I ask:

I took a self-cert mortgage over 5 years ago as recommended by my broker. Obviously my salary was rather 'inflated' to say the least. The mortgage is in my name only although I have since married and my husband pays half the bills/mortgage.

When I phone to take a payment holiday today, instead of just putting it through as usual they now calculate the payments differently and are checking to see if you can afford it. To do this they are asking for my net income, outgoings, unsecured loans etc. I normally use a mortgage holiday to help with Christmas a little.

If I was to give them all the 'real' details will they:

a) Take husbands income into the picture?
b) Can they take my mortgage away?
c) What are the possible outcomes?

I have never had any problems with my mortgage, never missed a payment or such like. However I do owe a higher ratio than I would probably be lent and do have large debts.

koexelek

The worst they could do is not let you have the payment holiday.

As long as you make all your payments on time, you have nothing to worry about.
They are only concerened with the details at the time of underwriting , not now.

iamana1ias

Do you take a payment holiday every year? That's not at all clever. How come you can't afford Christmas without having to stop paying your mortgage?

mortgage-adviser-now

The Lender is understandably trying to establish why a payment holiday is necessary.

(they may not have doen this in the past but that is the nature of todays market)

If you have indicated that you can only make 11 payments in 12 and the Lender accepted that at face value they will face trouble if you later default.

You have suggested your financial position is getting worse rather than improving so you should think very carefully about other ways to make savings rather than not paying your mortgage.

littlekitty_2

Thank you very much for the advice.

We aren't actually struggling and are reducing our debts slowly - but surely. I essentially don't need the payment holiday, I could manage. However it is nice to have a little breathing room for Xmas. I don't do it every year just from time to time.