remortgage question

Hi, we had a fixed mortgage which ended in 2012, we have been on the variable rate since as we had some arrears as being on the variable rate was nearly £200 a month lower, we kept our payments the same until the arrears were cleared, this took 10 months. We have had no arrears with our mortgage for nearly 2 years but we do have lots of other debt which we are currently paying off through a debt management plan.
Since we last remortgaged we have both had job changes and our income is significantly lower hence the debt problems.
I know that we will not get a new mortgage through a new provider but is it worth me contacting our current provider to see if they can offer us a new fixed rate?
Our current joint guaranteed income is approx. £1700 and we have just over £90,000 on our mortgage.
We can manage the payments we make now which is £589 well but I worry that interest rates will at some point start rising and don't want to be in a position where we can't afford to pay.
My question is if I approach my current lender do I have any chance of being sold a new product?

Comments

  • what actually is your current deal?
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Mrs_L wrote: »
    My question is if I approach my current lender do I have any chance of being sold a new product?

    Lenders won't sell you anything. Switching product is a change of terms and conditions not a new mortgage. You've nothing to lose by asking what's available to you.
  • Mrs_L
    Mrs_L Posts: 319
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    what actually is your current deal?



    When my fixed deal finished I just went onto the variable rate.
  • Yorkie1
    Yorkie1 Posts: 11,535
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    What MC is asking, is what interest rate you're on at the moment.

    You can stay with your current lender, without a credit / affordability check being done, by transferring to another of their products (this is a customer retention product for existing customers) without changing the amount borrowed or the length of term left.

    Probably best to do it online - if you end up having a phone or branch interview, they may treat it as being an 'advised' transfer i.e. one where they have to assess whether it's the best product for you, which will probably involve full affordability reassessment.

    If you move to another lender, that's a remortage which will involve a full affordability assessment as it's a new application.
  • Mrs_L
    Mrs_L Posts: 319
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    Yorkie1 wrote: »
    What MC is asking, is what interest rate you're on at the moment.

    Sorry, my interest rate is 3.99% and I have 18 years left
  • who is your lender?
  • and roughly what would your house be worth now?
  • Mrs_L
    Mrs_L Posts: 319
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    My lender is Halifax and my house is worth about £120,000 I would think
  • Yorkie1
    Yorkie1 Posts: 11,535
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    So your loan to value (LTV) is likely to be in the 75-85% bracket if you owe more than £90K and the house is worth about £120K. (But you might be able to pay for a valuation if you think there's likely to be some movement upwards on the value of the house).

    https://www.halifax.co.uk/mortgages/existing-customers/switch-to-a-new-deal/

    Scroll down to the 'Mortgages up to £149,999' section and look at the 2 and 4 year fixed rate deals to see whether you're interested in either.

    You can always use the mortgage calculators on this site to see how much you'd be paying on them if the Halifax doesn't show you.
  • Mrs_L
    Mrs_L Posts: 319
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    Thank you, have taken a quick look on Halifax, will take a proper look tomorrow, the 4 year fixed looks ok it isn't much less than what we pay now but we know it is affordable and we would have the security of our monthly payments not rising for quite a while. Then hopefully in 4 years time our finances will be in a better state again so we would have more choice.
    I appreciate everyone's input thank you.
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