Help! Will current lender check income for new product??

rachey2711

Hi all,


Having a meltdown.....


Our current fixed rate expires at the end of April, will revert to 5.99% variable.


Does anyone know if lenders will re-check income etc if you transfer to another product??


I am worried that if they do check, they may decide to withdraw completely?! Is that possible???


My Husband bought a Ltd company in August last yr. He was under the impression that he isn't 'self employed' as such, as he has payslips & PAYE etc, but that he is an employee of his own company.


However, apparently mortgage companies don't see it like that, and class him as self employed. Apparently they wont even consider lending if you cant produce at least 1 yrs, and pref 3 yrs books. (even tho business has been running for 13 yrs!)


My contracted salary went down by almost half last month as I returned to work part time after maternity leave. This means my salary alone is no longer enough to qualify for a new mortgage.


I am worried that if I ask for a transfer they may want to check our details etc. If I don't ask, our repayments for up by nearly £300 pcm. advice please?!!?!

Thrugelmir

rachey2711 wrote: »

(even tho business has been running for 13 yrs!)

Means very little. As the business is under new management.

If they perform any sort of check it will relate to financial rather than employment aspects. Which will accord with responsible lending policy.

Wh05apk

Currently lenders will not normally re-verify income, however, it is likely with the new regulations coming in they will need to start doing so (I know Halifax at least will be asking for clients to confirm affordability, and also cross referencing with HMRC for on-going income)

CKhalvashi

Wh05apk wrote: »

Currently lenders will not normally re-verify income, however, it is likely with the new regulations coming in they will need to start doing so (I know Halifax at least will be asking for clients to confirm affordability, and also cross referencing with HMRC for on-going income)

I knew that HSBC never used to, but as my sister has just been through, they are now, too.

CK

rachey2711

Oh blimey. ....

Thanks for the responses folks.

So..... can they ask for the loan back if they do ask questions and dont like the answers??????

CKhalvashi

rachey2711 wrote: »

Oh blimey. ....

Thanks for the responses folks.

So..... can they ask for the loan back if they do ask questions and dont like the answers??????

I have thought that as long as you can demonstrate long-term affordability, there should not be an issue; maternity leave will be temporary, and they should understand this.

CK

katiegizmo

we were just in a very similar situation as my salary no longer counts as In took a temporary job after maternity. We recently remortgaged and they didn't check but as others have said the rules are changing
Have you told them you want to remortgage? We put ours through and got the offer about 6 weeks before the previous mortgage expired, I assume they set it up on their system at this time and it automatically changed on the expiry date
xx

Keekles

rachey2711 wrote: »

So..... can they ask for the loan back if they do ask questions and dont like the answers??????

Not quite..?

They won't be pulling you off the mortgage provided it's being paid. The rate will jump to 5.99% and you'll be expected to pay it at that rate; but they won't expect you to give them the full amount back just because your other half has changed jobs.

LaFlotte

As far as I understand it, they will have given you the loan for however many year, say 25. Your fixed rate expires at the end of April so you will either qualify for another fixed rate or, worse case scenario you won't and you will be stuck with the lenders variable rate, in which case you might be best going to see a whole of market broker to see if they can get you a better deal, but your lender won't be looking for the money back!

Which lender is it? Our Halifax fixed rate was due to end at the end of May but they let you re-fix 3 months early so we are just in the process of doing that and the new rate kicks in at the end of this month hopefully.

They didn't ask us to re-verify our income, but then again our currenct account is with them so I guess they can see our salaries going in.

Hope this helps. Might be worth looking to re-fix early if possible and perhaps fixing for several years.

rachey2711

Thanks for all the info folks.
Our current lender is Accord, am hoping that they will write to us ans offer another product without doing too much checking - we have never missed a payment etc so fingers crossed.

I know it's highly unlikely that they would recall tge loan - however I have be told it's possible. Its not just a simpke matter of a job change on hubbys part. He is now classes as self employed, so they wouldn't lend at all in his current situ... I hate mortgages!!! Almost thinkin about flogging house, releasing equity, paying of debts and renting for a bit. (Which is why I am awake and on here at 4:50 am!!!)

LaFlotte

The more you read the more you realise everything is possible with mortgages I guess but I am sure the loan is only called in when people have been fraudulent.

It can't be that uncommon for someone to go self emplyed over the course of a 25 year mortgage. It's not like you've done anything wrong so I am sure you will be fine and worse case you'll just have an interest rate that isn't as good as it could be.

I would contact them and see when would be the earliest you could change to a new fixed rate deal.