what happens after fixed rate ends?

Lynz16

Can anyone help me to understand this a bit better...

Me and my husband took out our first mortgage, 90% over a 40 year period back in 2009, it was fixed for 3 years and I think the interest rate was 5.99%
The fixed rate will finish in January but I am worried about what happens after that as I am currently on Maternity leave and my husband has changed job and is now on a lower wage, our credit scores have also taken a bit of a hit since we took it out so are also now much lower.
Will the bank offer us a new fixed rate? and what kind of information would we have to provide them with for this? do we need to go through the giving all the wage slips and bank statements and surveys and valuations again?
Could they refuse to keep the mortgage at this stage?

Thanks in advance for any help

CLAPTON

normally the mortgage reverts to their SVR (standard variable rate) this will probably be less than you are paying now.

check your paperwork or their website

to get a different mortgage i.e. a new fixed rate deal may involve looking at your financial details again.

billa_champion

Once a fixed rate finishes you normally just switch to the lender's SVR. You need to ring the lender to find out what this is. If you want to fix again, they'll value your house and according to the LTV will determine the product(s) they can offer you. HTH

Lynz16

Thanks I guess I was just worried that they would suddenly take the mortage off us!

R_P_W

no they won't take the mortgage off you - you said it yourself you signed up for 40 years! You are going to have it for a fair while yet.

Find out what rate you revert to and what the payment will be etc. It is likely it will be less than you are paying now. Don't be too keen in rushing into another fix unless it is competitive.

Maybe speak with someone like London and Country and see what else might be available to you with other lenders? I was going to suggest keeping your payment the same so you pay off some capital a bit quicker and save some interest (it will cost a lot over 40 years!) - but seeing your signature probably best to focus on eliminating debts.

holly_hobby

Unless there is a further advance reqd in addition to your new product application, you will simply be switched to whatever existing borrower rate you choose (which may be subject admin fees), without any further status checks. A re-valuation may also not be an automatic requirement.

Of course you may wish to remain on SVR/BMR (whichever they use as their mge variable), until you decide you want to hop on to a product.

Of course any application for a further advance (i.e additional borrowings), OR remortgage to an alternative provider (as suggested) WILL naturally result in full status checks being performed by the provider - whereby your maternity leave status will obviously be an issue (if your income in is reqd to service the debt).

Hope this helps alleviate your worries ... and that you're enjoying your new baba !

Holly x