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Remortgaging on low income
ElisabethJane
Posts: 1 Newbie
Hi everyone,
This is my first MSE post!
Myself and a friend bought a house together almost 2 years ago on a 2 year fixed mortgage with Coventry BS. We'd like to remortage to a new deal when our term ends to avoid the jump to their standard rate.
However, since we bought the house both of our employment situations have changed: I'm now on a fixed-term contract due to expire before our mortgage term is up, and after that will have to find another job. My friend is unemployed at the moment and due to personal circumstances is not planning on getting another job before our mortgage term ends, however she does do occasional freelance work.
We have paid our mortgage on time every month and don't anticipate a problem paying it in the future, as we both have some savings and our mortgage isn't expensive. Our equity is probably at around 40% as the house value has gone up quite a lot in the past couple of years.
I'm pretty certain that a new lender wouldn't give us a mortgage under our current circumstances, however I heard from a friend that Coventry would have to relend to us provided that we've kept up with mortgage repayments up until now. Is this correct? I'm very happy to stay with the Coventry as the new rate we could get with them is competitive and it will save us a lot of hassle on paperwork, but I just wondered if anyone knows whether there's a chance they won't remortgage us and if so if we should be making contingency plans?
Thanks all for any advice!
E
This is my first MSE post!
Myself and a friend bought a house together almost 2 years ago on a 2 year fixed mortgage with Coventry BS. We'd like to remortage to a new deal when our term ends to avoid the jump to their standard rate.
However, since we bought the house both of our employment situations have changed: I'm now on a fixed-term contract due to expire before our mortgage term is up, and after that will have to find another job. My friend is unemployed at the moment and due to personal circumstances is not planning on getting another job before our mortgage term ends, however she does do occasional freelance work.
We have paid our mortgage on time every month and don't anticipate a problem paying it in the future, as we both have some savings and our mortgage isn't expensive. Our equity is probably at around 40% as the house value has gone up quite a lot in the past couple of years.
I'm pretty certain that a new lender wouldn't give us a mortgage under our current circumstances, however I heard from a friend that Coventry would have to relend to us provided that we've kept up with mortgage repayments up until now. Is this correct? I'm very happy to stay with the Coventry as the new rate we could get with them is competitive and it will save us a lot of hassle on paperwork, but I just wondered if anyone knows whether there's a chance they won't remortgage us and if so if we should be making contingency plans?
Thanks all for any advice!
E
0
Comments
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They don't HAVE to allow you to move deals but they may do.Changing the world, one sarcastic comment at a time.0
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Coventry are not 're-lending' to you. If you are not asking for extra funds you are merely requesting a new rate.
Don't go 'volunteering' the information provided here. Simply ask them for a new rate.
http://www.coventrybuildingsociety.co.uk/mortgages/existing-members/switching-deals.aspxI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Have a look on their website for retention deals (i.e. for existing customers) and whether you can transfer online without going through phone interviews or other appointments.
If this is possible, then they won't check affordability I believe.0
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