mortgage renewal

first1244

My mortgage is up for renewal soon however I've made some horrendous money decisions recently in terms of spending money on online games. I've lost a bit but im in no debt because if it. other than this have a good credit rating and no credit cards or payday loans. When it comes to renewing mortgages does anybody have any experience of this or advise on what to do? I have a savings plan in place now and my online games account will have been closed for nearly a month when I have the review. They have only asked me to take wage slips with me. Can they repossess the house even though the mortgage has been paid because of this or am I over panicking? Cheers

kingstreet

They cannot repossess the house.

If all that's happening is your initial deal is coming to an end, you will roll on to the "follow-on" rate, which is probably your lender's standard variable rate.

You may be offered a customer retention product. Another time-limited offer of another rate, but worst case scenario, you're on SVR.

first1244

Thanks kingstreet. Forgive me for asking a couple more questions. As we've paid the mortgage on time and increased our salary by a combined £7k since we brought the house is this why they've asked to just see wage slips and nothing else? If they do ask for statements I was worried they would remove me from the mortgage (not sure if they can do that?) because of it but then I think all I've done is made some bad decisions with my spare cash, i lost like 1k over 4 months hence the reason I cut the account sharpish when I actually realised. If I do show my statements are they duty bound to at least let you run on a variable or can they refuse that? Cheers

amnblog

You have a contract to run onto the variable.

Who is your lender, you will probably have an option to switch rate without providing any information.

If you do need to provide information wait until your bank accounts are 3 months clear of this nonsense and all options should be available to you.

Please, please cut the online games out of your world. We saw a client earlier this year who it caused big problems for.

first1244

The lender is halifax. They've advised they need to run some affordability questions because they're the new rules but said that they just need wage slips and Id when we meet. Told my partner about it and he wants to go for the appointment anyhow because he wants another fixed deal if we can. My main concern is being taken off the mortgage. I should say that none of this has happened within the mortgage bank account so the joint account spending is there to see. I've also recently switched my current account to the same lender as I couldn't bare to look at how daft I'd been on my old account any more!

kingstreet

They are carrying out a simple affordability check.

If you fail it, you will remain on SVR or whatever your follow-on rate is. If you pass, they will offer you another deal.

That's it. Nothing more, nothing less.

BTW - assuming this is Halifax, you can actually select a new product online without having to go through affordability. This is only happening because you have chosen the "advised" route, via the phone or branch.

first1244

So I should go to the appointment with the info requested and see where I go from there. If they do ask for wage slips to be sent in should I be going in to explain them or letting them run with them? Also in your experience is it pretty instant that they will tell you if you've been unsuccessful?

amnblog

Why don't you select a new product online as Kingstreet suggests.

Or have a broker do it for you?

first1244

My partner is quite intent on going into branch, whether this is to teach me a lesson or not im unsure. Also I would have thought online would have asked me for a bank statement anyhow?

kingstreet

first1244 wrote: »

My partner is quite intent on going into branch, whether this is to teach me a lesson or not im unsure. Also I would have thought online would have asked me for a bank statement anyhow?

No. Online is an information-only process. You are shown the products open to you. You pick one.

If you go into a branch, it becomes "advised" and they have decided to check affordability again. You will not be asked for bank statements. They may decide you can't afford your current mortgage and tell you you can't have 3% per annum, but the end result will be you'll revert to the SVR which is 3.99%.

Perverse, but true.

They cannot take you off the mortgage, repossess the property or anything else if you are making the required payments.

amnblog

Your Partner is likely to come out of the Branch with a hole in his/her foot.

Be calm, be steady, be smart