interest only mortgage - will change of circumstance end mortgage deal?

greenflamingo_2

Hope someone can help with this one.
In 2009 I was made redundant but managed to change to an interest only mortgage just before the redundancy was announced. I decided not to look for another job and am a stay at home mum. My partner (who is on the joint mortgage) works full time in a relatively secure job. I did not inform the mortgage company of a change of circumstances as there was no problem paying the mortgage (only 10% of my partners take home salary). We have never missed any payments.

We have now put our house up for sale and the provider has said subject to a credit check/underwriters etc. that we can port our mortgage over to a new property (yet to be found). The amount currently borrowed is based upon both of our salaries when we both worked full time.

If we try to port the mortgage will the provider reduce the amount we could borrow on interest only?
If the sale of our property fell through and we didnt buy another property would the provider try and say we couldnt keep our existing mortgage anyway as one of us is not working?

We have a viewing on ours at the weekend and are now worried in case someone offers and we dont know what is going to happen with the mortgage?

shortchanged_2

How do you plan to pay off the mortgage when the term ends?

greenflamingo_2

Hi shortchanged
I have 4 isas and a SIPP - we currently owe £160K on mortgage, and have £70k in ISAS, and £200K in SIPP. We were planning to use 25% of our SIPP to pay off the mortgage in 8 years time when I am 55. We were also thinking about paying £10K lump sum out of the ISAS each January (starting next month) each year - but not sure whether we should try and keep as much in the ISAS as possible before we port the mortgage.

Cannon_Fodder

Make your mortgage small enough to not need your income to qualify for it ?

nell53

The word 'portable' is a bit of a misnomer as your lender will want all your up to date bank statements, outgoings etc for the new mortgage, so they will know your change in employment status.

What it does mean is that generally, you can take the current rate and the term you are paying with you. If your partners income is OK for the LTV you want, it should be fine. Good luck.