Remortgage confusion!

capheaton

Hi all,

My current 2 year fixed rate mortgage has come to an end with NatWest. I am now on their SVR, which is higher than the rate I fixed at.

If I fix again with NatWest and take out one of their fixed term products, the payments each month will be less than SVR, but since taking out the deal 2 years ago I have since took out a £20,000 loan with HSBC to pay off credit card bills which were accrued through carrying out work on the house.

Will this affect my chances of been able to remortgage? Do they run checks against you like that when you are already an existing customer? Should I just remain on the SVR?

Any help on this would be gratefully received

creditcarddebt

Hi

Did Natwest not send you anything when your fixed deal was coming to an end offering you a new fixed rate? Our fixed rate with Natwest is due to end at the end of July and in April we had a letter reminding us it was due to end and we could view the new deals they were offering us online. As we are in the position where our income had reduced the option of remortgaging elsewhere was not an option, so we could take the option of an execution only deal which we could do online as long as we were not changing the amount borrowed or the length of the mortgage. We signed the paperwork and the new rate starts 1st August. I do not know if the same will now apply as your fixed rate has ended and you are on the SVR. Maybe give them a call and find out??

capheaton

Thanks for the reply. I was avoiding calling them just incase the change in finances mean't they would not want to even continue providing me with a mortgage. So i thought keeping SVR was better than nothing!

dj1471

As long as you're not borrowing any more money they're not required to re-assess affordability... but they could choose to do this anyway. As you'll be paying less than currently they can't really say no...!

creditcarddebt

It has to be worth calling them, they can't withdraw your mortgage and make you pay it all back in full, worst case is that they will not offer you a new fixed deal and you stay on the SVR, but trying to get a new fixed deal has to be the best option surely.