Mortgage renewal when unemployed

tyramhall

Hi everyone

i took out a 5 year fixed deal mortgage with northern rock which ends in january 2011. At the time i lived on my own and was single.
I have recently been made redundant and jobs in my field are very scarce.
My girlfriend has moved in and 10 months ago we had a little girl.
What are my options as regards to going to another mortgage lender if i dont currently have a job?
My girlfriend is a full time student and receives a £9000 bursary together with other financial help from the university. I have mortgage insurance which starts being paid next month.
Are there any options or do i have to accept northern rocks offer?

Any help much apprciated!

Paul

dunstonh

Mortgages do not renew. You buy a mortgage for a term and at the end of that term they should be repaid. The deal you buy is for a limited period of years. It is not classed as renewal.

You cannot remortgage as you are not employed. So, you options are to stay on the terms of your current deal when it expires (typically moves to a tracker or standard variable rate) or you can buy a new deal with that lender.

dimbo61

So Paul what you need to do is dig out the paperwork that came with your mortgage and see what happens when the fixed rate runs out ?
Does it say that the mortgage reverts to the NR SVR ? or does it go onto some form of tracker that follows the Bank of england base rate!
Now the paperwork is now 5 years old so dont panic if it says the rate will be 7.49% our CURRENT SVR just give NR a call on monday ( mortgage centre) and ask what you mortgage moves onto in January 2011 and good luck job hunting

tyramhall

Thanks for the advice!