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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Advice on mortgage renewal
debpeb
Posts: 34 Forumite
Hi
My fixed rate mortgage is up for renewal in August after a 5 year fixed rate. When I applied for the mortgage previously I was working term time only and was told that my working and child tax credits would be taken into account when letting me have the mortgage as I also put a large deposit down (my divorce settlement) on the house. Five years on my children are now near adults and my tax credits are about to end but my partner will be moving in and my eldest son will be paying rent as he will be working full time so there will be the same amount of income into the house but nothing on paper showing this. I have been told by my lender that I can get a new mortgage with them no problems as they have based it on the fact I am now in a full time job and have had no problems making payments the last 5 years (never missed a payment) but other companies have told me that they will not be able to offer me mortgages due to the new government changes as I cannot prove on paper that I can afford the payments and my income is low. As the interest rate is lower than it was 5 years ago and I own more than half the house I do not understand why?
Because of this I can't seem to be able to get a deal with a different company yet their monthly payments are less than what my current mortgage company is offering me over the next 5 years. Is there any way round this?
If there is anyone that can give me any advice on this I would be very grateful thank you
My fixed rate mortgage is up for renewal in August after a 5 year fixed rate. When I applied for the mortgage previously I was working term time only and was told that my working and child tax credits would be taken into account when letting me have the mortgage as I also put a large deposit down (my divorce settlement) on the house. Five years on my children are now near adults and my tax credits are about to end but my partner will be moving in and my eldest son will be paying rent as he will be working full time so there will be the same amount of income into the house but nothing on paper showing this. I have been told by my lender that I can get a new mortgage with them no problems as they have based it on the fact I am now in a full time job and have had no problems making payments the last 5 years (never missed a payment) but other companies have told me that they will not be able to offer me mortgages due to the new government changes as I cannot prove on paper that I can afford the payments and my income is low. As the interest rate is lower than it was 5 years ago and I own more than half the house I do not understand why?
Because of this I can't seem to be able to get a deal with a different company yet their monthly payments are less than what my current mortgage company is offering me over the next 5 years. Is there any way round this?
If there is anyone that can give me any advice on this I would be very grateful thank you
0
Comments
-
Your existing lender has no requirement to perform a full review of your circumstances whereas a new lender will. No account will be taken of any non guaranteed income i.e. parties not named on the mortgage.
Yes, interest rates are low compared to 5 years ago. Exceptionally low, as we are in exceptional times. In due course the cost of money will rise and mortgage interest rates will again be 5%, 6%, 7% possibly even 8% for some. So lenders need to cautious. The days of easy lending are over. Lenders now have a regulatory obligation to lend responsibly and within certain parameters ensure that the repayments are affordable.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards