Mortgage Deal Ending Soon - Now Unemployed

sortedatlast

Hi all,
Hope some of you can advise me. I am currently unemployed , having been made redundant 6 months ago. I have an MPPI policy which is presently covering my mortgage payments, however that will finish in 6 months time.
My mortgage is a Fixed Rate deal with Nationwide due to end in April. My query is if I would be classed as being eligible for a new deal should I still not be working by April. I know that Nationwide will allow customers to reserve a deal up to 3 months before deal end and I would be keen to do this. Simply wondering if my "unemployed" status would affect this?
Any help you can give would be really appreciated!

opinions4u

It's unlikely that Nationwide would ask about employment if offering you an alternative deal.

Out of interest, is the SVR you move on to 2.50% or 3.99%? If it's the lower rate, you choose to stick with it.

As for your MPPI policy - I assume you don't consider it mis-sold!

Good luck with the job hunt.

RenovationMan

I've never been asked to provide employment details when remortaging with an existing lender, so you should be fine. However, are your MPPI payments made directly to yourself or to the Nationwide?

If they are paid directly to the Nationwide, then I'd imagine that they'd have it documented that you are unemployed. If the money is paid directly to you, you may have the option of going interest only on the mortgage and putting the difference into a savings account, which will extend the period you'll be able to cover your mortgage for. Once you get a job, you can then make overpayments to the mortgage to get you back on track.

jaysb

when i was out of work I was unable to remortgage with any lender. however current svr's are not too bad and you can look for a deal once you get a new job.

Talk to your existing lenders: if repayment ask to temp drop to interest only, if you have endowments then see if you can take a temp payment holiday. But do talk to them, prior to making any plans.


Good luck and all the best for your job hunt !!

sortedatlast

Thanks for all your replies.
The SVR I would move to is the 3.99% rate and yes have been pleased with the MPPI.
The MPPI is actually through the Nationwide although handled by Aviva so agree, they should have on record my unemployed status.
I have always had Fixed Rate and was fearful that being unemployed would hinder me being offered this again.
Also, thanks for advice re going interest only. Had not thought of that. Do you think that would be a better option in case I have not secured a job by the time the MPPI expires?

popsy2

We have just had a bad time with husband off work with depression and Nationwide agreed to go interest only for 3 months.Dec to feb. I have asked them again for a further extension and woman was most unhelpful and told me must use any savings we have first (not much),and would not consider even two months further (not considerate this time that depression still exists). He has got a new job soon on much much lower wage & I am also worried like you when our fixed deal comes to an end what happens. On their ready reckoner they wont agree to loan us as much as we are already borrowing-good luck. Let us know how you get on.

opinions4u

woman was most unhelpful and told me must use any savings we have first

Is it unreasonable to use your savings rather than underpaying your contractual mortgage payment?

jaysb

Hope you're husband is on the mend

I guess you're going to have to look into the possibility of your husbands salary not increasing back to the original level. If you're going to struggle to make the repayments then you may be better to think of your options now e.g. down-sizing to something more affordable until you can borrow more in the future, if at all.

michaels

If you go to svr you have much more flexibility to sell if need be without being hit by ERPs.

Does your mppi pay a fixed monthly amount or does it cover whatever your mortgage payment is - in the former case I would go interest only, in the later you are better off staying repayment until the mppi runs out.