Re-Mortagage and Maternity Leave

TedLaRue

Hello all

I'm looking for some advice with regard to re-mortgaging.

At the moment I have a part of my mortgage on the Halifax's stanadard variable rate and part on a fixed rate which is due to finish in August. I'm looking at re-mortgaging the whole lot onto a new fixed rate deal but this co-incides with my partner going back to work after a years maternity leave.

My question is what will a new lender (or even my existing one) look for in terms of salary? My partner is looking at going back part time so will they take the new salary into account (obviously with no history of these earnings) or will they look at the last six months (which will be just my income!)?

Also the fixed rate part of my mortgage is up at the end of August so are when is the best time to start looking and applying? Can I get in early before the interest rates rise possible another couple of times as expected?

Thanks in advance for your help.

Scaredy_Cat_3

Hi

I think you can only realistically look/apply for new deals about 6/8 weeks before your current tie-in period ends. I used to work for Abbey and at any one time they would have a selection of deals open to customers, which would be available for a few months, then they would close and be unavailable to customers. At that point they would list a whole new range of deals. The deals are only available for a few months so anything on the market right now would more than likely have been withdrawn by the end of August when you would be free to take up the deal.

So, if you start looking about 8 weeks before your current deal ends, that should mean the deals available then will still be available at the end of August, and therefore you can sign up for whichever one you like. Also, if you look a few weeks ahead of your current deal ending it should give you time to get all the paperwork sorted so you can switch onto the new deal as soon as the current deal ends.

As for signing up for a deal before the interest rates go up again, I think the only way you can do that is to pay a penalty to get out of your current deal early, although you would need to check your t&cs.

herbiesjp

TedLaRue wrote: »

Hello all

I'm looking for some advice with regard to re-mortgaging.

At the moment I have a part of my mortgage on the Halifax's stanadard variable rate and part on a fixed rate which is due to finish in August. I'm looking at re-mortgaging the whole lot onto a new fixed rate deal but this co-incides with my partner going back to work after a years maternity leave.

My question is what will a new lender (or even my existing one) look for in terms of salary? My partner is looking at going back part time so will they take the new salary into account (obviously with no history of these earnings) or will they look at the last six months (which will be just my income!)?

Also the fixed rate part of my mortgage is up at the end of August so are when is the best time to start looking and applying? Can I get in early before the interest rates rise possible another couple of times as expected?

Thanks in advance for your help.

Your exisiting lender will not normally ask for anything, if you are not increasing the borrowing, and just looking for a product switch

A new lender will base the mortgage on the scenario at that point in time. So if you are working and your partner is going back to work they will just want proof of the current income - last payslips etc.

If you are looking at fixed rates, now may be a good time to look, as I've received a load of email from lenders advsing that their rates are being withdrawn shortly. Aslong as the lender issues an offer letter valid for 6 months you can hold of completing on the re-mortgage until after your current deal has expired

Mr_helpful

If remortgaging They will look at wifes new income you may just need a letter from wages dept to prove it.

TedLaRue

Thanks for the info, albeit slightly conflicting. I guess the best way to find out is to get going and start enquiring with lenders.

A couple more questions though.

Will my existing lender (Halifax) look at enticing me to stay with them if I look to switch? I'm not sure how the mortgage world works with regard to retention of existing customers. Is it worth contacting them first?

As my existing mortgage was originally based on two full time salaries, but the re-mortgage will now be one full time + one part time, will this limit my choices of lenders/decent deals?

Thanks once again.

regularsaver1

if you are just doing a product transfer with halifax, there is no need to look at income

the only problem is if you want to borrow any more