A brokers perspective...MMR

Yorkie1

loveka wrote: »

I've just read all this and I am a bit worried now, as I didn't know this applied to remortgages with a current lender!

So, when my fixed deal runs out I will have to go through this with my current lender? I think we wouldn't get a new fix with these criteria, as we only have one income now and although we can easily afford what we currently pay, at, say, 7% on paper we ouldn't be able to. So would we then be put on the SVR? Which would be less affordable for us?

At this point we would only have 5 years left on our mortgage. So in effect these new rules will mean we will pay loads more in interest for those 5 years?

Is this the case? If so, it seems like madness to me...

Not all lenders are presently applying the MMR approach to product transfers.

Also, bear in mind that if you only have 5 years left until the end of the whole mortgage at that point, most of what you're paying off is capital rather than interest, so interest rates are going to have less of an impact than they did at the start of the mortgage.

loveka

Thanks! We are on interest only though, with an endowment in place.