New Mortgage Rules

juliemario

Hi,
Does anyone know how the new mortgage rules will apply to someone coming to the end of their fixed-term.
I have an outstanding mortgage balance of £180,000. I just went online to see how much we could borrow when our fix-term ends and it looks like we can only borrow £97,000. The new calculator asks for information about our council tax and childcare costs etc (which didn't seem to matter when we got the mortgage the first time round). Does this mean I'll need to move to a variable rate? I have a good LTV.
Thanks,

ACG

It will vary from lender to lender.

Some lenders may offer you what you need. If not then its a case of sticking with your current lender, you may have to sit on the SVR, alternatively you may be able to switch products - you need to speak to your lender.

Horseunderwater

If you do not want to remortgage as such, but just want a lower interest rate with same lender, then you need to speak to somebody about 3 months before it ends to see if they will give you the deal you want. That's what I did last year & will do again next year.

kingstreet

Horseunderwater wrote: »

If you do not want to remortgage as such, but just want a lower interest rate with same lender, then you need to speak to somebody about 3 months before it ends to see if they will give you the deal you want. That's what I did last year & will do again next year.

Some lenders are affordability checking customer retention products, even where there's no alteration to the amount borrowed or the term.

What happened to you last year may not be the same next year if your lender is one taking MMR more seriously than it was intended in such circumstances.