Fixed rate coming to an end advice needed

TheJaxster

My wife and I are currently on a fixed rate mortgage with HSBC which is coming to the end of its 3 Year term. A lot has changed in the last 3 years I lost my £20,000 a year job and now earn more like £15,000. We've had a baby and my wife is pregnant again she's a full time stay at home mum now. Our mortgage was the top end of what we could borrow at the time and with our reduced income it is costing us more than 50% of my take home pay. We've never missed a payment. We will actually be better off when we roll over on to the variable rate at the end of the term, but while intrest rates are low I'd like to fix again for as long as I can. I know that a couple of months before we switch to the variable rate HSBC will ring to offer a better rate. If we have to prove our income again as if we were a new customer there is no way they would accept us a new mortgage. Are we better to keep quite and let things take their course or should we try and fix and hope they just assume our circumstances are unchanged?

crabbity_witch

you shouldn't hide a change in circumstances like that from your bank, especially the one that owns your home.

i know, i know, banks are obviously the root of all evil in the known world therefore it's okay to lie and defraud them but really - think carefully before you lie or withold information from them

you would be better off making an appointment if possible and speaking to someone in a branch. try explaining your situation to a member of staff in person if you can - provided you're upfront and honest then i would bet they'll try to help if they can.

not everyone who works in a bank is paid stupid money for ruining the whole world, i bet you could fond someone who's in the same boat who can help.

yelf

crabbity_witch wrote: »

you shouldn't hide a change in circumstances like that from your bank, especially the one that owns your home.

The bank doesnt own their house. The owner owns the house, and owes the bank money. The bank DOES NOT own the house.

ViolaLass

yelf wrote: »

The bank doesnt own their house. The owner owns the house, and owes the bank money. The bank DOES NOT own the house.

They owe the bank money which is secured on the home.

_Andy_

If you're not borrowing any more money your income isn't relevant as it won't be a new application (assuming you're staying with HSBC).

_Andy_

crabbity_witch wrote: »

you shouldn't hide a change in circumstances like that from your bank, especially the one that owns your home.

i know, i know, banks are obviously the root of all evil in the known world therefore it's okay to lie and defraud them but really - think carefully before you lie or withold information from them

you would be better off making an appointment if possible and speaking to someone in a branch. try explaining your situation to a member of staff in person if you can - provided you're upfront and honest then i would bet they'll try to help if they can.

There's no need to lie etc - HSBC won't be underwriting the mortgage again as long as the borrowing isn't increased.

TheJaxster

Are you saying that even though our circumstances have changed the bank wouldn't ask us to prove our income again if we switched deals? Would the bank be able to withdraw our mortgage even though we've never missed a payment or would they keep us on, but force us to stay with the standard variable rate once we roll over?

beecher2

TheJaxster wrote: »

Are you saying that even though our circumstances have changed the bank wouldn't ask us to prove our income again if we switched deals? Would the bank be able to withdraw our mortgage even though we've never missed a payment or would they keep us on, but force us to stay with the standard variable rate once we roll over?

As long as you're not asking to borrow more money, or wanting to port the deal to another property then no, they won't ask you to prove your income, or check your credit file. No need to tell them anything, unless you feel paying your mortgage is going to become too difficult.

The only thing which might make them refuse to give you another deal is if your LTV is too high

_Andy_

TheJaxster wrote: »

Are you saying that even though our circumstances have changed the bank wouldn't ask us to prove our income again if we switched deals?

Yes as I've said twice above.

Would the bank be able to withdraw our mortgage even though we've never missed a payment or would they keep us on, but force us to stay with the standard variable rate once we roll over?

The bank are under no obligation to offer you another fixed rate - worst case will be you go on to the SVR.
give them a call to find out your options.

dimbo61

Hi what does your mortgage paperwork say your mortgage will revert to at the end of the fix?
The HSBC SVR is 3.94% and depending on your LTV you may be able to get a long term fix of 3/5 years to give you and your family long term security.
They are doing 3.89% fixed for 2 years but you may want to fix for longer ( till the kids are at school and OH back at work!!)
5 year fixes at 5.19% with low fees ( what are you paying now? )