Remortgaging - changed circumstances

BCW_2

Hi our fixed rate is coming to an end next July. It was a joint mortgage application based on my husband's full time and my part time salary. Since we took out the mortgage our circumstances have changed. My husband was made redundant and I went back to a full time position. My full time salary is the same as our previous joint income. However, when we look at remortgaging next year, I presume we will still make a joint application but my salary will be our only income + will this affect the amount lenders are willing to offer us? Also when should we look into options, and how long are any offers valid for? I.e. Could we start looking in march for something to come into effect in July?

Thrugelmir

Is your mortgage interest only? If its repayment then you'll owe less than when you applied previously.

dimbo61

You also need to read the T&C,s that came with your existing deal and find out what it reverts to at the end of the fixed period !!
now this information maybe 2/3/4 years old
So if it states that the mortgage reverts to the lenders SVR or some form of tracker deal ? the figures it may quote may be 4 years old
you may find staying on the follow rate is best for you

BCW_2

It's repayment but have only had the mortgage 2 years when fixed rate expires + over long term so won't have reduced by much. The t+c's state we'll revert to SVR but, whilst this will definitely mean lower payments as current interest rates stand, ideally would like to get another competitive fixed rate so payments are secure + affordable in case interest rates rise.

kingstreet

You need to know the follow-on rate for your current mortgage product, an idea of the customer retention products your current lender is offering to existing borrowers whose products are ending soon and what you could hop to get from a remortgage to a new lender.

Once you have that, you can compare the rates and establish what is sensible and hopefully, what's possible.

Most lenders set a short time limit on a remortgage offer, three months being the usual maximum. I suggest you plan seriously around two months from the end of your current product.

BCW_2

Do lenders generally offer less when it's based on one salary as opposed to two salaries, even if the one salary equals same amount as previous joint income?

LawrenceAMN

Most lenders now use an affordability calculation to decide how much they can lend.

Households with a single income can expects lenders to be less generous than if there were two incomes. One income at £60,000 means high rate tax, whereas two incomes at £30,000 each will be taking more income net of tax.

For this reason you can expect to borrow more with two incomes.

Some lenders, and Nationwide is one, will also calculate a lower affordability figure for self- employed incomes.