End of fixed rate mortgage but made redundant

john_1978_2

Hi I am new to this site. I lost my job this year and couldnt find another one so I had to set up as self employed. I'm managing to cover all my outgoings and I've got some savings for emergencies so I'm ok. I also have spotless credit rating and no loans/credit cards. But I'm on a fixed rate mortgage which ends next year and I dont know what will happen then. I darent ask my bank as I havent told them that I lost my job in case they stopped my mortgage. My income is about half now I am self employed but by living frugally I manage to pay my bills and survive. I am hoping (praying) that my mortgage lender will simply move me onto their variable rate mortgage without asking any questions. But I've checked their website to see what the rate will be and it doesnt show a variable lender rate (unless i'm being stupid and cant see it). I would never get my mortgage now as I am a low earner but I can meet the repayments so I dont want to sell up at this stage to downsize. My house is already quite small! Can anyone advise me on what is likely to happen? If the mortgage lender finds out I've lost my job what will they do? Am I under any legal obligation to tell them? (Gulp) Do some mortgage lenders not offer variable rates? Mine is the Woolwich. I'd appreciate any advice as I'm worrying about this a lot.

shortchanged_2

You will automatically go onto their follow on rate. Whether that is a SVR or an above base rate tracker depends on your lender.

Your lender should send you information closer to the end of the deal to inform you what rate you will revert to.

opinions4u

I darent ask my bank as I havent told them that I lost my job in case they stopped my mortgage

As long as you're paying them the full monthly payment, they won't care. They can't repossess while full payments are being made.

Many Woolwich and Barclays mortgages go on to a very low rate that tracks BofE when a fixed rate expires. Look at your paperwork and see what it says. Or just ring them and ask the question. You don't need to disclose any other information.

The time to worry is when you can't afford the payments. From the sounds of it, you don't need to worry.

shortchanged_2

Looking at the Woolwichs website it looks as if you'll revert to 3.39% above base rate which is currently 3.89%.

However if your deal was taken out a good few years ago it may be something different.

undaunted

Opinions4u is right - you're basically worrying about nothing here. As long as you can pay the mortgage they can't (& wouldn't want to) "touch you" or your mortgage. You'll just drop onto their standard rate which may not be that much under current circumstances. (You could probably even find it on their website if you don't want to ask overtly)

john_1978_2

Thanks for all your feedback. You have really put my mind at rest.