What happens now?

ankspon

My wife has taken severance from her local council(along with thousands of others).The fixed rate mortgage is up for renewal in June and at the moment she is working for an agency,so what will happen when we go for renewal.

TrickyDicky101

What is the rate you will go on to after the fixed rate is up? If it is very favourable in comparison to another fixed you may be able to get, it could well be worth while just to remain on SVR for the time being.

dwsjarcmcd

It also depends on your salary. If that is sufficient to maintain the mortgage on its own, then you could shop around. If not, then you will have the choice of your current lenders products or, as has been mentioned above then their SVR. To get your current lenders products will not involve any further underwriting checks, unless you have arrears.

ankspon

I believe the rate is lower when we come off the fix,we have no arrears so it's good to know there will be no more checks if it gives us the chance of a decent fixed rate later on.

dimbo61

You need to look at your long term plans?
Has your wife been given a good redundancy package? Can she take early retirement?
Outstanding mortgage and your income come into play.
Its no good having £50K sat in the bank earning 0.1% if you are paying 4.99% on the SVR of your mortgage!
Good Luck

ankspon

The package for my wife is under £10k,so not much to make a difference,i receive an occupational pension due to ill health so my income is minimal.(i was working when we took the mortgage).My wife cannot take early retirement as she is too young and not enough income.I just wanted to make sure we would still be offered some kind of mortgage as circumstances have changed.I expect we will have to sell in the near future but it depends on my wife getting full time employment.

dimbo61

You dont lose your existing mortgage when the fixed rate is up and as you have already said you will go onto the SVR which is less than you are paying now.
Good luck with the job hunting for your wife