Remortgaging during maternity leave

monkeybradders

Hi,

My wife and I have a 2 year fixed rate ending in September. My wife is due to return to work in October but hasn't decided if she will or not, she has until end of July.

We can apply for a new fixed rate now to come into effect from September. We've told the lender that we've had a baby and my wife has said she is returning to work, which is true up until the point she decides otherwise, from a certain point of view.

If they agree the new rate and then she decides not to return to work do we have to tell them? and if we do what can they do in terms of the loan? We can afford to pay the mortgate on my single salary but if we applied on my salary alone we wouldn't have been accepted.

thank you in advance for any advice

kingstreet

Are you remortgaging, or are you asking your current lender for a customer retention product?

The answers are different in each case.

monkeybradders

I would have say remortgaging but i can see how it could be a customer retention product since we intend on staying with the current lender.

Our 2 year fixed rate is running out so we're looking to get onto a new rate for another 2 years with the current lender.

kingstreet

In 99% of cases, you won't be asked anything about your current and future circumstances.

They already have your mortgage, so no new status enquiries are needed.

FWIW it's only a remortgage if there will be a change of mortgage deed securing the loan to the property and that isn't the case if there's no change of lender.

monkeybradders

Thanks for the clarification.

Ok so we're taking a customer retention product. They've already asked about future circumstances, i.e are you returning to work , which at this point my wife is. The main concern is that if she decides not to and don't tell them is our home at risk even though we're still covering the payments?

kingstreet

I don't understand how this has come about?

Have you contacted them and ventured information about a change of circumstances, as most lenders will simply offer you a choice of products and that's it?

If you've somehow invoked the "advice process" you may find you only get a retention product following a detailed affordability assessment. I can't tell you what your lender might decide to do as you haven't actually told us which lender it is and they are all different. There is a chance with the lender known someone will have a similar experience.

Does your lender have an online facility to change products - NatWest, Halifax, Nationwide etc?

monkeybradders

Apologies , the mortgage was taken out with the Post Office and they use Bank of Ireland to supply the product.
It's come about by my wife calling to talk about getting onto a new fixed term and them asking if anything has changed, like having a baby

kingstreet

No idea about how BoI operates, so you're going to have to wait for someone with similar experience.

monkeybradders

thanks for looking at the post

bobbyreyes523

If you are already having a mortgage, you just need to look at the interest rate while re-mortgaging and some qualification rule of your area.

dimbo61

Can you look on the Bank of Ireland website or Post office website at mortgage deals for existing customers.