Where do I go from here?

Jet

My 3 year fixed rate mortgage ends at the end of June.

I have been applying for a new mortgage (for a re-mortgage) with the nationwide and after 6 weeks have just been told that my application has been rejected because they do not take tax credits into account as income. Why are they telling me now? :mad:

My property is worth around £150,000 and I am looking for a £47,000 mortgage. My income is low (I am a single parent working part time) but get tax credits. I have paid the current for 3 years with no problems and have no other debts.

Who can offer me a good fixed mortgage rate on a 3 or 5 year mortgage who will take into account tax credits?

I am currently with the halifax and they have offered me not very good rates at all as I am a current customer and only new customers get the good deals apparently. :mad:

herbiesjp

Does seem a little strange that it took so long for them to tell you.

You'll have to bear in mind that all fixed rates have bee increasing lately also.

Jet

Yes, I know. I'm really angry.

Now I will have to go onto the variable rate because I will not get a new deal in 2 weeks. I'm sure they will say that there is something written in the small print about not taking into accounts the tax credits.

Any suggestions where else I should look?

I did have a financial advisor bloke come round but he is linked to estate agents and didn't seem to find very good deals and didn't phone / arrive when he said he would, so I am reluctant to go back to him, but maybe I need to because I don't want to go through this again.

herbiesjp

You are going to have to bite the bullet on the SVR

If you didnt like him the first time around, I would go with your gut instinct and not go back.

Where are you? If you want to send a pm I'll see if I know any local advisers

regularsaver1

jet, your right in that if you don't do anything by end of june you will go the standard variable of 6.5% - but there is something a little better in the mean time (5.9% tracker no arrangement fee and no tie ins) - you could do this in the mean time. Remember to leave you'd have £175 early discharge fee and possibly £50 deeds dispatch fee if Halifax holds them

of course there are are other rates available but there would be tie ins and possibly fees

Strange that Nationwide didn't tell you earlier, - how did you apply?

Jet

regularsaver1 wrote:

jet, your right in that if you don't do anything by end of june you will go the standard variable of 6.5% - but there is something a little better in the mean time (5.9% tracker no arrangement fee and no tie ins) - you could do this in the mean time. Remember to leave you'd have £175 early discharge fee and possibly £50 deeds dispatch fee is Halifax holds them

of course there are are other rates available but there would be tie ins and possibly fees

Strange that Nationwide didn't tell you earlier, - how did you apply?

Thanks for that info. I've phoned Halifax and my fixed rate will switch straight to the standard tracker at the rate you quoted.

I've got a couple of idea lined up. To be honest there doesn't seem to be a lot in it between them all. £10 or so per month. But £10 is £10.....

BTW - I applied online

regularsaver1

the standard tracker at 5.9% is a product so better than standard variable in the mean time

suppose the only think about moving is having to state income

dwsjarcmcd

Yorkshire Building Society take tax credits into account. See this link for more info http://www.ybs.co.uk/mortgages/freshstart/borrow.jsp