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turned down based on "affordability"
TheLifeIReallyWant
Posts: 25 Forumite
My mortgage is interest only and I want to change it to repayment. It is also on a standard variable rate and I want to move it on to a discounted rate.
Had a call with the mortgage department today and they say I cannot afford it - which is insane. They've agreed to manually apply for an exception but i have no idea what are the chances of success.
I can keep over paying manually each month to bring the balance down but the rate is 4% compared to the discounted 1.7% that I was after.
I feel like I'm being conned :mad:
Had a call with the mortgage department today and they say I cannot afford it - which is insane. They've agreed to manually apply for an exception but i have no idea what are the chances of success.
I can keep over paying manually each month to bring the balance down but the rate is 4% compared to the discounted 1.7% that I was after.
I feel like I'm being conned :mad:
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Comments
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Who is the Lender?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The lender is Natwest0
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Why cant you switch to the discounted rate and overpay within the allowed amount?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Why cant you switch to the discounted rate and overpay within the allowed amount?
They won't allow me to switch to the discounted rate.
So sure I can (and will) overpay but it's going to take me a whole lot longer to pay off.
I don't seem to be able to get any transparency over the "rules" to establish what I could do differently.0 -
Except that they told me that even though my husband pays the school fees that sum is taken off my income because they are my children...0
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TheLifeIReallyWant wrote: »Except that they told me that even though my husband pays the school fees that sum is taken off my income because they are my children...
Are you applying for a mortgage in your sole name then?0 -
They won't allow me to switch to the discounted rate.
Why not?
A change in mortgage deal does not require an affordability test. Only when you borrow more, change the term of the mortgage or change lender do you need to be tested for affordability.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Why not?
A change in mortgage deal does not require an affordability test. Only when you borrow more, change the term of the mortgage or change lender do you need to be tested for affordability.
Switching to repayment from interest only may require a check. Onus remains on the lender to ensure affordability.0 -
Thrugelmir wrote: »Switching to repayment from interest only may require a check. Onus remains on the lender to ensure affordability.
Maybe but the OP said that the lender refused changing to a new deal even if they stayed on interest only.
This would either suggest a misunderstanding (which can be corrected) or there are also changes to the terms of the mortgage beyond the deal.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yes applying for mortgage in sole name.
I don't know why they have done an affordability check - but they have and "computer says no".
The trouble is over paying only solves my problem the next two years - i can only overpay 10% which is fine whilst my mortgage is high but after two years I'll need to be repaying more than 10% to keep on track to repay the mortgage.
I just want to pay my mortgage off0
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