Simple remortgage question but a quick answer would be hugely helpful..!

moomaloo

Good morning all. I'm getting myself into a bit of a state worrying about this and would very much appreciate your advice...

My fixed term with my current mortgage lender is coming to an end and their new mortgage deals are even better than the one I am currently on and substantially better than the standard rate I will automatically move to when my current rate ends - so it makes sense to swap.

I thought (hopelessly it seems...) that switching with my existing lender would be a painless process but having made an initial contact with them it seems they need to go through the whole means testing process again, even though I have never missed a payment and, with the new rate, my monthly payments will be less than I've currently been paying.

My problem is this: Since being awarded my mortgage three years ago I now have credit card debt that I didn't have when I initially applied (yes, I know...). It's just 'one of those things' but I very much fear that it will scupper my chances of being accepted for a new mortgage, even with my existing lender. My life is complicated with large child maintenance payments etc and, although I am not in 'difficulty' I am certainly in a worse financial position than I was three years ago (unexpected house bills haven't helped at all...)

My worry/question is this: If I try to apply for a new mortgage with the same lender and it is declined and my current financial situation is revealed, will this potentially affect even my existing mortgage? In essence, would I be better to simply shut up and carry on paying my existing mortgage, even though my monthly payments will increase? I am scared that I may somehow lose my existing mortgage...

I have a telephone appointment with my lender this afternoon and I don't know whether to engage with them or simply say that I've changed my mind...

Thanks.

mrginge

Regardless of your current financial situation you will not lose your current mortgage.
If you are declined on the new deal you simply continue on the svr.

moomaloo

Thanks mrginge, that is a huge relief. I absolutely hate all this... I presume my lender will carry out thorough checks so my dirty washing will come to light..?

amnblog

Lenders work in different ways on this.


If they feel they are giving you 'advice' they have to check everything.


In most cases you can switch to a new product without getting 'advice' from them.


If you can select a new product online that is the safest option.


With some lenders you can sort it via a broker.

moomaloo

Thanks. There is no online option unfortunately, though I have previously received various alternative mortgages through the post and asked to 'simply' tick the one I require and return it... I could request this option but I guess this will then be followed up with a large mortgage application form...

mrginge

moomaloo wrote: »

Thanks mrginge, that is a huge relief. I absolutely hate all this... I presume my lender will carry out thorough checks so my dirty washing will come to light..?

Not necessarily. Lenders are allowed to bypass full affordability tests under certain circumstances, however this is discretionary.
There's no reason to not have the conversation with them. At worst you'll get declined, but that doesn't automatically exclude you from other lenders and at least you'll have an understanding of what you need to do to improve your financial situation.

amnblog

moomaloo wrote: »

I guess this will then be followed up with a large mortgage application form...

I doubt it

amnblog

mrginge wrote: »

There's no reason to not have the conversation with them.

There is if such a conversation makes you an 'advised' client and transition arrangements are not offer.


You are 'shutting the door' on current lenders options.