In a dilemma

gjcookson

Hi - can anyone offer any advice?

I took out a two year fixed term mortgage with Platform in early 2014. At that time I was in a permanent job and got a mortgage for £135k for a house value of £195k. I am now in a fixed term employment situation (plus a little bit of self employed income) and am having trouble remortgaging.

Most lenders are refusing to offer me a mortgage deal because of my fixed term contract - which has 18 months to run. This is because neither I or my employer can offer any guarantee that the contract will be extended or renewed, and despite me having hefty unemployment insurance and a guarantee of a considerable redundancy payoff no-one will listen and consider me too high a risk.

I am asking for a mortgage of £131k now against house value £195k.

I am wondering what will happen if I just do nothing and remain with Platform. At the end of the current two year fix what will happen???

1. Will they offer me a move to a different product (eg another fix) and allow me to move to this without re-checking my employment situation (eg as an existing customer they might not bother)?

2. Will they only offer me their Standard Variable Rate?

3. Will they refuse to allow me to continue with a mortgage full stop based on my different circumstances (eg I may no longer meet their criteria)?

I am happy with option 1, can live with option 2, but am really frightened about option 3 and having a mortgage withdrawn from me.

Any advice is gratefully received.

betmunch

Option 2 is most likely, unless platform have started offering retention products in the last year or so.

Option 3 will not happen.

If you are in the same field of work a good broker should be able to get you a remortgage offer

gjcookson

Thanks for the reassurance about option 3. Will investigate brokers who can advise about specific lenders' criteria as, yes, I am in the same field of work and intend to remain so.

It does seem strange that Platform (or any lender) might say "oh, we can't offer you one of our best deals that might have your monthly payments at £600 because you are too risky a prospect, but here's our SVR that will put your monthly payments at £750 and we are confident you are not too risky a prospect for that.".

betmunch

It shouldn't seem strange.

You signed up for a deal that goes to their standard variable rate at the end of the fix.

If they don't have retention deals then they don't have retention deals that's all there is to it.

Give them a call and ask them if they have any retention deals and you'll know for sure

Thrugelmir

As a fixed term contractor what redundancy rights do you have?

gjcookson

Due to continuity of service, good ones. Payoff would be in excess of £20k but lenders refuse to believe that I would use this to pay mortgage.