Remortgating - drop in salary/affordability

coakeywells

I wonder if anyone else has had this problem?


I have had quite a significant drop in salary since I last re-mortgaged, resulting in me not being able to pass the affordability tests. I come to the end of my fixed rate deal in a couple of weeks, and going onto the variable rate will increase my repayments by £60, which I can afford, but don't want to do. I have looked around and a new fixed deal will save me about £70/month.


Problem is - no one will give me a fixed deal due to my drop in income, I have been comfortably paying my mortgage and over-paying by £100/month for 2 years.... but no one will take this into consideration. I am nervous what might happen to the rate if I stick to the variable, and I don't know how long it will be until I can get off it again.


Any advice?

amnblog

Who is your Lender?


They should give you options to switch to without checking your financial position again.

coakeywells

Halifax - unfortunately my mortgage is on their old system and so they need to start the whole process again to put me on the new system. Seems unfair but not sure what else I can do?!

amnblog

They can just swop you over.


If you find it tricky, or are concerned about the process, have a mortgage broker handle it for you.


We do these all the time.

coakeywells

I started with a mortgage broker, he was the one who informed me that I would no longer pass the affordability checks. He said he tried to process the swap onto the new deal, but was unable to due to me not being on Halifax's new system, and still having an old Halifax roll number.

amnblog

He may not know what he is doing by the sound of it.


We have done several product swops where clients would not now meet affordability.

Funny_old_game

Unfortunately your wrong amb..... Some accounts starting with A/ have to go through the full process like my dad did. Something to do with the account nor on the new system so the only way was do a remortgage. He was and is with Halifax.....they wouldn't do a straight swap.

His mortgage is now on the new system they were on about after it all went through. The solicitor knew about this all along.

tedders

@coakeywells please keep me posted on your outcome, I'm in the same boat on the old Halifax system and I might have affordability issues too. My fixed rate ends in July 2016 and apparently I will need to switch either in branch or over the phone. Online is not an option because of that A roll number. They've also told me the switch to the new system would happen whenever I switched to new rate.

I read on this forum that you can convert that A number into the new 14 digit account number and apply online for the new deal, without affordability checks... see below, courtesy of @Mortgage_Mark. I can't try it yet as I would be paying ERC if I switched now, but perhaps it will be useful for you.

"Change the A to a 10; take out the slash, and replace the dash towards the end with a 0, and add enough 0's on the end to make a 14 digit sort code/account number, and put this in the 'Account Number' box.

Halifax's system won't recognise it in the Roll Number box but will in the Account Number box, if in the right format.

E.g. A/12345678-9 becomes 10123456780900.

You can often 'fool' Halifax's system with an A/ number."

Also see this link for reference, it explains the 14 digit conversion: http://www.halifax-intermediaries.co.uk/pdf/news/migration-full-guide.pdf

amnblog

Funny_old_game wrote: »

Unfortunately your wrong amb..... Some accounts starting with A/ have to go through the full process like my dad did. Something to do with the account nor on the new system so the only way was do a remortgage. He was and is with Halifax.....they wouldn't do a straight swap.

His mortgage is now on the new system they were on about after it all went through. The solicitor knew about this all along.

I am not wrong FOG.


I am saying that affordability is not necessarily a barrier to doing a switch to a new Hfx rate.


I am talking about what brokers can do.


What the online system can and cannot do is another issue.

coakeywells

Thank you everyone for your replies. Had another chat with my mortgage broker and he is adamant there is nothing he can do for me. I have now sent an online complaint to Halifax explaining how much of an inconvenience it is being on one of these old roll numbers. I found out today that it also stops me from being able to use their internet banking service. I have asked why my account isn't on the new system for me to do a straightforward product swap. Might get me somewhere, might not. I'll keep you updated.

Thrugelmir

coakeywells wrote: »

I have now sent an online complaint to Halifax explaining how much of an inconvenience it is being on one of these old roll numbers.

Wouldn't it have been easier to discuss it with them first. To see what options are available.