remortgaging with fixed term contract jobs

seebee73

Apologies if this is a big long

We have our current a/c and mortgage with Santander. We are tied into a fixed rate deal until July 2012 and then we are wondering if we should be thinking of moving to a different bank. We didn't shop around the last time we remortgaged (July 2009) because we both work in the University sector and both always work on fixed term contracts and we thought no other bank would look at us during the credit crunch. We simply rang up and asked to go onto a new deal. As we were already with them and our wages are paid to them they didn't ask for any proof on job status etc. We have no CCJs or missed payments or anything "bad" at all. We owe about £123k on a house worth about £175k.

We quite like the First Direct offers and we wondered about approaching them for a remortgage. Would it be a good idea to move current a/c to them in advance? If we move to them and then they won't take us for a remortgage would Santander put us though a full application process or could we still do what we did 3 years earlier. I know we would still have a mortgage with Santander and they couldn't simply close it but do you think they might limit us to the SVR we revert to in July. I prefer to fix even if it mean paying slightly over the odds because at least we can plan for it.

kingstreet

You'll have a follow-on rate, probably the Santander SVR. Closer to the expiry date you can ask them about the customer retention products available to you, as you did previously.

If you don't like what's on offer, you can then consider a remortgage but you'll have to meet any new lender's status and affordability requirements. Some lenders won't like your employment status. Others will be less concerned.

Phone First Direct and ask them their policy. No point moving accounts for something they won't give you. Then I'd contact an independent or whole market broker for advice on other potential lenders.

seebee73

Thanks for quick reply. We both actually have good earnings and have always worked and paid childcare etc. We have never missed a payment on anything. At the time we took out the mortgage they would have lent us far more than we wanted. We took a sensible amount that we felt comfortable with but now I realise that we might be considered higher risk.

I suppose we should stick with teh current a/c we have so that at least we have a back-up plan. Do you think we can assume at worst that the same relaxed approach would be used again by them?

kingstreet

AFAIK only arrears would prevent you being offered another deal when this one ends.