Mortgage rate will come to an end when I'm on maternity leave? PLEASE HELP!!!

cheekyblade

I am a teacher and I will be going on maternity leave from September 2011 this year. The thing is my mortgage is up for renewal in Fenruary 2012 when I will be earning only SMP. Can I secure a new deal at the start of September based on my full time wages even though the deal wont start for another 5 months or will I have to return to work 3 months after my child is born to clock up the full time pay cheques in order to get my mortgage. I have borrowed £207,00 and the house is valued at around £275,000 if that helps any.
Please help - I was hoping to take a year off but I may not be able to as I need to renew my mortgage.
Any help would be greatly appreciated.

foreversummer

You don't have to 'renew' your mortgage. Your mortgage will continue at the follow-on rate agreed when you took out your mortgage. This is most likely to be the lenders standard variable rate or possibly a tracker rate.

You need to dig out the paperwork that you were given when you took out the mortgage.

Don't panic! Your mortgage is not going to just end in 2012.

izools

Some lenders also allow you to re-fix the rate; i.e. move on to a new promotional rate product at the same cost you'd pay for said mortgage as a new customer.

dimbo61

So now you need to read all the paperwork that came with your mortgage!
Consider it homework!!!!
If at the end of the current deal ( is it fixed? ) what does it say the mortgage reverts to?
Now is it the SVR which was SAY 7.5% IN JUNE 2007! and could now be 2.5% or some kind of tracker deal which may also be less than you current fixed rate.
You may also be able to take out another fix rate deal with your CURRENT LENDER come jan/feb 2012 as they wont ask for pay slips unless you are borrowing more
Stop worrying and enjoy your time off with the bump and new baby GOOD LUCK

pokey128

I remortgaged when on mat leave and getting MA (hadn't been in the job long enough for smp). The mortgage company wanted my last 3 payslips from before mat leave and a letter from my employer saying I was going back and what my salary would be.
Good luck x

dimbo61

pokey128 was remortgaging her property while you are just comimg to the end of your current deal and your mortgage will simply revert to whatever it says in the paperwork!

cheekyblade

Hi - thansk for the posts. At the end of the fixed rate of 4.3 it will revert to the SVR however as Im a control freak I like things fixed but would like the option to shop around all the lenders to find a good fixed rate - so Im wondering if new lenders will see me earning diddly squat and refuse a mortgage.