Remortgage soon on lower income this time..

ferry

I fear there may be troubled waters ahead..
Thinking ahead,we are due to remortgage at the end of this year.I lost my job mid last year and although I'm lucky enough to have found another I am on a fixed term contract earning far less than I ever did.
We currently have a 2 year deal deal with Nationwide on a repayment mortgage with around 44% LTV with around 14 years left if that helps..
Can I ask for advice on what will happen if I'm unable to up my income as I'd hope to when it comes to remortgage time?
I'm afraid we may not be able to find a good deal due to our combined salaries so might it be a case just coasting straight into Nationwides SVR after our deal ends?

Any advice appreciated on what we need to prepare for if things dont improve..
Many thanks as usual
F

_Andy_

Unsure of your income. However, on the assumption they won't be high enough, you can either a) stay on the SVR with NW, or b) see what other rates (eg fixes) NW have available. If staying with your current lender and not borrowing any more, the mortgage will not be underwritten again and therefore your income won't be relevant.

ferry

Thanks Andy
out of interest -as this does worry me more- how is a fixed term employment contract viewed by either current or potential lenders?

holly_hobby

New or further borrowing - The term of the contract will be looked at, your profession and the profession the contract is in (i.e is it a specalist field such as IT contractor, Solicitor etc, whereby you are likelly to easily achieve work & an income even if the contract ends ), has the contract already been renewed, and/or if the contract it is likely to be renewed at the end of the current given term.

Contract apps will all come down to your credit score, LTV, type or contract & profession, presentation of the case, and of course the underwriter.

Just changing a rate with your current lender shouldn't be problem, if there is no further borrowing or requirement of mortgagor assessment.

Holly

ferry

Many thanks for the info..
Out of interest will I still need the services of a mortgage broker if we slip into the SVR with our current lenders?

hcb42

no you wont.