Switching deal with Nationwide

Mortgage21

We will be dropping off our fixed rate in November and our current mortgage is with Nationwide. Can you tell me if we will have to go through an affordability and employment check again In order to refix if we stay with Nationwide? As with many other posts my husbands employment status has changes since we took out our mortgage which will make it difficult to re fix with any other lender. Thanks in advance. Steph

Thrugelmir

There shouldn't be a requirement to undergo thorough checks in order to secure another product with the NW.

Yorkie1

I switched online (pre-MMR) and there were no checks. However, I wonder whether they would want to do checks if you tried to do it over the phone (or wanted to borrow more / change the term)??

Mortgage21

Thank you. Please could you tell me what MMR stands for? We have paid the mortgage without fail every month and we can continue to afford to pay it. My husband now earns more money than prior to our original mortgage application but is now self employed and earns more money in commission. Therefore it is doubtful we would pass the checks again at this time. We do not expect to borrow more money or want to change our term so fingers crossed we will be able to use the Nationwide online switching tool. I have read that more and more mortgage companies are making it difficult for existing customers to re fix.

Yorkie1

Don't 100% know what the specific acronym stands for, but it basically means that in late April lenders had to start applying stricter tests to assess whether borrowers could afford the mortgage both now and also over the next few years at much higher interest rates. (Some lenders introduced their revised tests a bit sooner than that though).

There's also something I think which means that they are taken to have advised you whether the product you take out, is the best product for your circumstances. Hence if there's a longer term or increased borrowing, they may have to go through stuff with the same fine toothcomb.

There are reports of some lenders also taking the view that even if it's just a product transfer (i.e. good track record of paying existing product, no change in amount borrowed or remaining length of mortgage), they have to look at the details afresh. Some people are reporting that if they ring the lender then they insist on the discussion / review. What I don't know is whether the lenders offer the ability to renew online and thus avoid the discussions ...

kingstreet

Mortgage Market Review.

The FSA's plan to reform mortgage lending. Its introduction was formally announced in October 2012 and its introduction took place on 26 April 2014.

Thrugelmir

Mortgage21 wrote: »

We have paid the mortgage without fail every month and we can continue to afford to pay it.

Affordable and responsible lending is part and parcel of MMR. As unfortunately people are far too often overly optimistic about their own finances. Higher interest rates for example will impact people in the years ahead.