Am I a mortgage prisoner???

simmysi

Hi,

I had a quick question regarding my mortgage.

I've come to the end of my fixed rate with Barclays and now dropped onto the BBBR of around 4.5-5%. A lot has happened since I started the fixed rate 2 years ago, mainly that I quit my job and started my own company. The company has been going properly for around 6 months and is doing well, but I've only been taking out what money I need to cover bills etc, and reinvesting all other profits in more stock to grow it further. I'm more than comfortable that I can pay the mortgage and that *eventually* I'll be far far better off then when I was employed.

My question is this, if I stay with Barclays, and want to switch to one of their current fixed rate deals, will I be asked to go through all the proof of income checks? this would probably mean that I would be forced to stick on their SVR as I wouldn't have 2/3 years of accounts or tax returns to show them for my new income.

I was hoping that by sticking with the same lender it would be more of a product switch than a remortgage? and everything else would just remain status quo - probably hoping in vein though!

Secondary question, I've also pumped 50k into a full renovation of the house in the past 2 years - would it be revalued if I was just switching products with the same lender, as this could make a big difference to my LTV.

Many thanks if anyone could shed some light onto this.

HappyMJ

As long as you are not borrowing any more money then you shouldn't need to go through affordability checks with the same lender.

What interest rate are you paying? BBBR means Barclays Bank Base Rate which is 0.5% plus the add on bit. The revert to rate is 0.5% + 3.49% meaning the rate charged is 3.99%. You might want to check that out. Only BTL mortgages have a higher revert to rate of 0.5% + 4.49%.

simmysi

Thanks for the reply.

Yes you're right, I'd mis-read the letter and it is actually 3.99% (I thought it was 3.99+0.5%).

So I'd be looking to swap to their 5 year fixed @ 2.39% if I could get the house revalued to bring my LTV down.

HappyMJ

simmysi wrote: »

Thanks for the reply.

Yes you're right, I'd mis-read the letter and it is actually 3.99% (I thought it was 3.99+0.5%).

So I'd be looking to swap to their 5 year fixed @ 2.39% if I could get the house revalued to bring my LTV down.

Give it a go. If the valuation is close they might not agree with your own personal valuation and go with the one they commission. The 5 year fix at 2.53% for 70% LVR isn't that much more expensive. Depends what figures you're talking about and depends if they want to do a full affordability check which hopefully as you are staying with them you should be able to avoid.

£200,000 of loan would cost an extra £280 a year. After 5 years you could re-mortgage again and hopefully you'll have your accounts and can switch provider.

amnblog

We handle these switches every day for clients.


Barclays just ask for an instruction to switch they don't check anything else.


Our process is:


Identify details of current arrangement


Get current valuation from Barclays


Identify product options and discuss with client - agree rate


Notify Barclays of request to switch.

simmysi

That's great.

Thanks for the advice, i'll be calling them later!

Landofwood

amnblog wrote: »

We handle these switches every day for clients.


Barclays just ask for an instruction to switch they don't check anything else.


Our process is:


Identify details of current arrangement


Get current valuation from Barclays


Identify product options and discuss with client - agree rate


Notify Barclays of request to switch.

Colum knows his stuff.

themull1

I rang my lender last week and they told me the valuation of my house and the amount of mortgage i had left, i then went on line and converted to a new fixed rate for five years, i didnt need to do anything else.

dimbo61

Well done and thanks for the info as we are on a tracker deal with Barclays and might jump ship soon to a fix !