Mortgage dilemma

Beans27

Hi all I posted a thread on the families board a few weeks ago, called 'worried' if you are interested in the full story. People there were really helpful with advice, it would be useful to get some specific opinions on mortgage queries.

Basic details:
- have a joint mortgage with partner - £180k, bought house for £225k 18 months ago
- current interest rate is 3.75%, pay £983 a month
- I earn £35k a year, partner has lost his job when family business went into liquidation 2 months ago
- I am 8 weeks pregnant, due May 2016 (assuming all ok). Currently trying to save as much money as possible to supplement maternity pay
- will be able to remortgage in April 2016

2 main questions I have really.....
1) I was thinking of asking the bank if we could pay interest only for a few months - could save that extra money a month to go into the pot for when I'm on maternity. Or would it be more sensible to keep paying the full amount, and see if interest only is an option when I'm on maternity....?
2) presumably when it's time to remortgage, it will need to be disclosed if partner hasn't found a job....what migh the impact be of trying to do that on my salary alone? Wouldn't have thought there would be any chance with a different provider.

Of course, hopefully this will all be unnecessary and partner will get a job reasonably soon - but I'm planning for the worst and hoping for the best!! Many thanks for any opinions.

alchemist.1

Beans27 wrote: »

2 main questions I have really.....
1) I was thinking of asking the bank if we could pay interest only for a few months - could save that extra money a month to go into the pot for when I'm on maternity. Or would it be more sensible to keep paying the full amount, and see if interest only is an option when I'm on maternity....?

2) presumably when it's time to remortgage, it will need to be disclosed if partner hasn't found a job....what migh the impact be of trying to do that on my salary alone? Wouldn't have thought there would be any chance with a different provider.

1. I would wait until maternity before considering interest only option (if available) Still quite a bit of time for your husband to find work.

2. Retention deals with your current mortgage lender at the end of your discounted period (without changing the length of mortgage/amount borrowed) will probably be your best option. Some allow a simple switch over online without further crdit checks/affordability checks.

As for remortgaging this will depend on affordability criteria and its something to check out using the calculators provided by most lenders. Remember you will also have a dependent by the time you remortgage (if you do remortgage rather than take a customer retention deal).

getmore4less

Lender, follow on rate, date of rate change?

Cut costs, hubby out of work can look for work and ways to cut costs.

Have you done the SOA for now and maternity.

Beans27

Thanks alchemist that was my gut feeling, ride it out and keep paying whilst I can, reassess when it gets nearer the time what's happening with partners work. And yes current lender seems like it would be the best starting point.

Get more for less, thanks, lender is natwest, I don't know about the follow on rate (would it say that somewhere?) or exact date - must be mid April. Did do an soa but not got round to posting it, must do that. I know full well I will be told buy cheaper dog food :-D
He's been doing a lot of ebaying and all that money is going into the savings pot.

getmore4less

Debtfreewanabee board is best for the financial review.

have a look at what may be on offer when your current deal runs out

http://personal.natwest.com/personal/mortgages/switch-mortgage-deal.html

dimbo61

The link to the natwest website should be your new bed time reading for the next couple of weeks /months.
Think very carefully ! Are you staying in your home long term ? Local schools ! How old will your son/daughter be when the 2/3/5 year fix ends.
You can often sign up to a new deal 3 months before the old deal finishes and with Interest rates still on hold in both the UK and USA you may get a better deal than your existing mortgage rate.
Use "whatsthecost " to work out how much the new mortgage will cost each month or post on here your outstanding loan amount and term and someone can work out the figures for you.
Rates have never been this low and will at some point start to climb so consider carefully a long term fix IF and only IF you have no plans to move.
IE one bed flat and 1/2 kids and you might have to move in 2/3 years time.
3 bed house and you can stay put for at least 5 years and overpay on top.

Beans27

Hi dimbo61 thanks for your advice - we bought this house with the intention of never moving, it's 4 bed so plenty of space to grow....I was originally Asking on my other thread whether we should think about selling and moving somewhere cheaper, but the general opinion was that would be shortsighted and counter productive.
Not looked at things like schools yet, will cross thAt bridge when we come to it!

dimbo61

Buying and selling is expensive and you have a good sized home if it has 4 bedrooms.
If you look on the Natwest website and put in your details you can see what offers they have available for your LTV.
You could ring the mortgage centre but do not give any info on husbands current job situation or your current pregnancy as you are only asking how long in advance can we book a new deal and fix at that rate. Put date in diary.
Now if you are not borrowing more or changing term you may be able to BOOK the new deal completely online with NO credits checks.
I would be looking online at ofstead reports on local primary schools as many parents have moved home and area just to get little Tom or Mary into the best primary school which is also a feeder school to the best high school in the area.

Beans27

Cheers, that's what I was thinking, keep cards close to our respective chests while possible. Will have a look at what the current offers are, will give some good intelligence.
Mmmm, sounds like this is going to be a whole new world with best schools and ofsted reports! Got the scan in 3 weeks, so fingers crossed all is ok and the planning can start in earnest