We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

A brokers perspective...MMR

12346»

Comments

  • Yorkie1
    Yorkie1 Posts: 12,184 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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
    loveka Posts: 535 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Thanks! We are on interest only though, with an endowment in place.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.8K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.