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Change of circumstances
YorkshireJoff
Posts: 4 Newbie
Hi MSE community,
We signed up for a mortgage two years ago when we were both in work. Since then things have changed. We both lost our jobs, my wife has since got a job and I have set up a business. Clearly we are not earning the £80k a year we were when we got the mortgage. The 2 year fixed rate is up but I am scared to contact the bank to discuss due to the change in circumstances and we may end up in a worse situation if we do. Our monthly cost has gone up £120/month which we can do without.
Any advice out there??
Thanks
We signed up for a mortgage two years ago when we were both in work. Since then things have changed. We both lost our jobs, my wife has since got a job and I have set up a business. Clearly we are not earning the £80k a year we were when we got the mortgage. The 2 year fixed rate is up but I am scared to contact the bank to discuss due to the change in circumstances and we may end up in a worse situation if we do. Our monthly cost has gone up £120/month which we can do without.
Any advice out there??
Thanks
0
Comments
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Switching products with your existing lender should cause no issues.
Interest rates are only going to rise in the future. So maybe worth considering all your options if finances are tight.0 -
Generally you can switch rates with your existing lender without affordability checks.0
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Landofwood wrote: »Generally you can switch rates with your existing lender without affordability checks.
Particularly if you do so online, rather than through a phone or branch appointment.
NB. This assumes you aren't changing the term or amount of the mortgage. If you want to change these, then it will be treated as a new application for a mortgage with all the associated affordability checks.0 -
What's the worst that they can do... refuse a rate switch and keep you on the variable rate?0
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