Can you be turned down a mortgage on a house you already own?

RickyC_IFSWP

louiserer wrote: »

What happens to you in that case?

You continue paying monthly but your rate will change to the mortgage company's Standard Variable Rate (SVR), which can go up or down at their discretion (usually but not necessarily following BoE's rate).

GolfFoxtrot

Me and the OH are in a fix for 2 years ending march 2016 at this point we'll look for a long term 5 year fix with a good SVR as we intend to start a family in the next few years.

We didn't want to start a family only to be stuck on our current lenders SVR.

boxfreshchris

We switched products with Nationwide last week after our deal came to an end. We were told we wouldn't have to go through the same affordability process as when we initially took the mortgage out, I answered a few basic questions and they swapped our product.

kingstreet

boxfreshchris wrote: »

We switched products with Nationwide last week after our deal came to an end. We were told we wouldn't have to go through the same affordability process as when we initially took the mortgage out, I answered a few basic questions and they swapped our product.

That is not what you will find in all cases with all lenders post-MMR.

Many lenders have interpreted the MMR affordability requirements incorrectly and have viewed a change of product as an affordability calculation requirement which the FSA October 2012 transitional arrangements clearly state should not be the case.

homehunter

This sounds similar to a situation we are in... any thoughts as to our chances of a decent remortgage rate, especially given the recent news about increasing rates?

• Took out a 5 year fix at 5.69% in Nov 2009
• Overpaid (capital and interest) mortgage for about the last 4 years
• Now probably looking at £118000 required (£168500 purchase price in 2009) EDIT: just checked - currently at £117826 on a valuation of £169500, so a it better than thought - brings it in below the 70% LTV marker I think
• Had a one year interest free credit card, paid it off within the year
• Moved to Sim only phones - £9pm and £13pm respectively
• Running a little old banger, bought outright in 2010 for cheap
• DH student loan paid off, earns app £31k. Mine comes out at about £96 pm, earning app. £28.5k
• No CCJ, defaults etc etc
• App. £6k in savings, good surplus in the current account

So, here's the thing. Now in our thirties and married, we are expecting our first child. Thrilled obviously but feeling a little apprehensive about the mortgage situation as we worked hard to increase our chances of being accepted onto a lower rate deal come November. We finally reached a point where I should be able to reduce my hours to balance out the childcare costs forthcoming in 2015. We were hoping to fix a deal about now but the banks are now saying they'll only look at doing this 3 months before our current deal ends, rather than 6 months it seemed to be before. There is an ERC applicable on the mortgage of 1% in year 5 (though I imagine this is now a bit less as we are halfway through that year).


Someone please give us hope? All we want is a reasonable rate after feeling like we've missed out for the last 5 years! 'Rates can only go up' they said... *sigh*

tigsly

calculate how much you will save if you pay off the ER fee..

Last time we were fixed we paid ourselves out of the ER fee (and were locked in for 2 years) .. but the 'pay out' was covered in teh first 6 months of the new mortgage (the fee was sooo much lower).. and in the longer term was well worth switching ...

homehunter

Hmm it is a tricky one. ERC is 1% of outstanding balance in our last year so 'changes on a daily basis'. We are currently at 118000 ish outstanding. Must admit I'm not too sure what's best!