First direct mortgage - will change of job impact me?

goosander

I would like to move house soon but will be made redundant in a couple of months, though I have another job lined up already. Would changing job be likely to prevent me from getting a mortgage in the current climate? If so would it perhaps be better to arrange the new mortgage now before made redundant (assuming of course they don't ask about that).

I'm currently on a BOE + 0.49% for life tracker which is in theory portable but I suspect that Abbey will look for any excuse to not let me port it at that rate. If I can't port my current mortage, I would probably go for a First Direct offset. Does anyone know if an impending new job would be likely result in a refusal - I would imagine I would otherwise be a good risk (no debts or bad credit, LTV would be approx 40%).

jill2002

You are correct - Abbey will not let you port that deal (due to system issues only), but because you have that deal, they have to offer you something similar or better :beer:

Providing you meet the criteria of the new mortgage underwriting, you would be best to stick with the deal you have with Abbey.

Good Luck

goosander

Thanks Jill,

Do you have any idea why only that particular mortgage causes 'system issues'?

Maybe I'm being too cynical but presumably underwriting criteria can be what ever they want and they may not tell you what the criteria are. Anyway I'd best give them a ring a see what they say.

jill2002

There are a couple of old style mortgages that have the system issues.

The underwriting will be the same for any mortgage package - infact it is underwritten before the package is chosen.

Just a suggestion..... you would be far better if you arranged to go into a branch, as trying to arrange a new mortgage with the system issues on your type of mortgage over the phone could be difficult unless of course you get one of the few people that understand it - just remember, the type of mortgage that you have is portable, it is just the system issues that prevent you porting it- so they have to offer you something the same or better, so that you are not disadvantaged.

goosander

I think you are right, I'll pop in to a branch at the weekend and see what they can offer.

I've had a look at the current Abbey mortgage range and it appears that the current flexible mortgages are no longer offsets - is this what would cause the 'system issues'. Were you suggesting that whilst I would get to keep my current interest rate, I may lose the offset facility but possibly be offered something else to compensate (even better interest rate?).

Thanks again.

jill2002

The deals for you do not appear on the Abbey website as they as 'special deals' for existing customers with your type of mortgage.

The Flexible mortgage (which is different to the mortgage that you have) is definately an 'Offset' mortgage and tracks the B of E rate. The deal that you will be offered will be very similar to the one you aleady have. just remember, the type of mortgage that you have is portable, it is just the system issues that prevent you porting it- so they have to offer you something the same or better, so that you are not disadvantaged. As you are on BOE + 0.49% for life tracker- this is what you will get (or less) - please don't accept anything else - unless you would specifically prefer a fixed rate ...... but are interest rates going to rise sufficiently to make it worth your while ?????

goosander

I have spoken to someone in their team that deals with porting and you are right, they confirmed that I should be able to port OK and that the new mortgage would also be an offset at the same rate. Not sure how the new product differs from the old though!

Interestingly, they also seemed to suggest that any additional borrowing would be on a different product but at a similar rate which seems unusually generous given the current climate.