Remortgage with debt?

Debtfree2009

Any advice would be much appreciated.

I need to remortgage for the first time after a five year fixed term.

I do have a considerable amount of debt, planning to be debt free in 2019, somehow managed to miss off 10 years off my user name...

I can totally manage my debts and have never defaulted, always pay on time.

However I am really concerned about remortgaging, what if they don't give me a new mortgage because of the amount of debt I have got???

HappyMJ

Debtfree2009 wrote: »

Any advice would be much appreciated.

I need to remortgage for the first time after a five year fixed term.

I do have a considerable amount of debt, planning to be debt free in 2019, somehow managed to miss off 10 years off my user name...

I can totally manage my debts and have never defaulted, always pay on time.

However I am really concerned about remortgaging, what if they don't give me a new mortgage because of the amount of debt I have got???

If you're remortgaging the worst thing that can happen is you continue with your current mortgage. You won't be forced to sell as long as you keep up the monthly repayments.

You'll just go onto the banks standard variable rate. They should allow you to choose another mortgage product with the same bank without having to do an affordability check.

Debtfree2009

Thank you so much for your super quick reply HappyMJ.

No affordability check at all?

HappyMJ

Debtfree2009 wrote: »

Thank you so much for your super quick reply HappyMJ.

No affordability check at all?

With the same bank. Same amount. Same term. Just a different product there shouldn't be an affordability check. You can't borrow extra and you can't shorten or lengthen the term.

You obviously can afford the mortgage anyway as you're going to be debt free soon so don't worry about it too much.

andyfromotley

As MJ says definitely no check when simply product switching as a Nationwide customer. Dont know about others.

northerner999

It depends on what you want to do, because rules have been tightened up following the banking crisis.

Firstly, you may be able to get away with doing it online with your lender if you just want to move onto another fix and not alter anything else.

I had to go in and have a chat with a mortgage advisor even though all I wanted to do was move onto another fix. Because I had no desire to reduce the term (I don't see the point, would much rather keep min payments as low as possible for now, as well as obviously lowest possible rate) they did not need to do all the affordability checks they said they would have had to do if I wanted a shorter term. I think they would have viewed that as a "new" mortgage, but not when it was just moving onto a new fix from svr which I had rolled onto. Still had to update on salary and c-cards, but no need to provide any paperwork and didn't bat an eyelid at my c-cards. This is Halifax.

kerryclear

Hi, I just looked this up as I'm entering into a DMP starting next month - I have two buy to let mortgages, one variable one fixed. As they count as an income I was advised against selling one or both to clear my debt as based on the equity it wouldn't really help me and would be more beneficial to keep them rented out earning me a bit more on a monthly basis, which could go towards creditors.
One of them I know is up for renewal in 2017 - so based on what's been said here will I be able to just let it continue on their variable rate (Leeds BS other Halifax) without them doing a check on my circumstances?

northerner999

I assume, Kerry, that if you do nothing but hit each monthly payment you need not do anything until the full term of the mortgage completes. The SVR at the moment shouldn't be too bad, but is sure to go up from the historic lows of the past few years.

Willowpop

I've just remortgaged and locked into another fixed rate off the back of the fix that's about to end... same provider, same amount, same term etc and def no affordability checks...the bank said they'd already agreed to lend that amount when I 1st went with them and as im not borrowing more then they don't do further checks.

Debtfree2009

Great thank you willow pop.

Did you manage to get a better deal then hear you were on?

cwal

I've just swapped rates at hsbc to a much better rate and as long as neither the amount or length of loan changed there is and was no credit check.