Natwest mortgage switch or early exit fee?

jetblack61

Hi all,
I have a 2-year fixed deal with NatWest that doesn't expire until the end of October.
I've just found out I'm pregnant and will very definitely be off on maternity leave when my fixed term expires and I'm worried I won't qualify for a new mortgage with such a reduced income. I have savings and will have no problem with repayments whilst I'm on mat leave.


I can switch my deal with NatWest, but not until 3 1/2 months before my current product expires (mid-July ish). Does anyone know what is involved in this? Will I need proof of earnings etc at that point (quite likely to be off on mat leave by then)?


Is it better to get a new mortgage with a different lender now whilst I'm still earning full wage and take the hit of the early exit fee (£1500) for my current NatWest mortgage?


Any advice gratefully received!

betmunch

If you apply for a new mortgage you will be asked if you know of any future changes to your circumstances so the maternity leave and future dependent will still be taken into account.

This does not mean you can't get another mortgage, just that you need to make sure the lender is OK with your income.

Plus you should always have the NatWest retention products as a back up. Changing product should not required financial assessment

jetblack61

Thanks Betmunch - sounds like I might be best to stick with my NatWest product until the end and then switch to whatever they've got by that point. I guess I will just end up on their SVR if I do nothing, so not 'without a mortgage' by the end of this term.


I don't know what my job situation will be like post-mat leave, so my income may well be permanently different from what it is now.


Just had a bit of a panic that I might not have a mortgage once this fixed term ends.

betmunch

No, As you say you will always have the SVR which is pretty good with NatWest as a last resort.


Their retention products should be much better though.


Without knowing your job situation post-maternity leave a lender will not be able to make a decision on you so you are right to plan for taking a retention product rather than a new mortgage

Casa1862

I'm going to do the same but with Co-op, they do an execution only deal which you choose the product without advice and they simply move you to another product, I can lock in a deal 4 months before mine expires. I found even if the rate is slightly higher its saves hassle and survey fees, admin costs etc.

jetblack61

So just to clarify, if I switch to a different product with NatWest once I'm able to, will I have a financial /income check? By the time I'm able to switch I'll already likely be on maternity leave and therefore my income will be drastically reduced compared to what it is now.

amnblog

You can switch without an income check.

If you change Lender's temporary lower income on maternity leave is not a problem as they Lender works on assumed income when you return.

Of course childcare costs, or not returning on same hours can cause an issue.

Some lenders on re-mortgage (not product switch with current lender) will ask you to evidence capital to bridge the temporary drop in income.

wannabeprudent

jetblack61 wrote: »

So just to clarify, if I switch to a different product with NatWest once I'm able to, will I have a financial /income check? By the time I'm able to switch I'll already likely be on maternity leave and therefore my income will be drastically reduced compared to what it is now.

You can even do it online

https://www.switch.natwest.com/SVRWeb/nwb/faces/login.jsp

jetblack61

wannabeprudent wrote: »

You can even do it online

https://www.switch.natwest.com/SVRWeb/nwb/faces/login.jsp

Thanks wannabeprudent - I knew I was able to do this, I just didn't know if I'd need proof of income for the process...and if so whether I'd be better trying to get a new mortgage now while I can prove my income is good!

DebsJM

I found Natwest unhelpful when I was exiting early. had a 3-yr fixed with Natwest in England but moved to NIreland almost exactly 2-yrs through the deal - 2011. I wanted to take my mortgage with me and just transfer it to my new house but they refused to operate in NIreland. Natwest are part of Bank of Scotland as is Ulster Bank. They wouldn't let me transfer my mortgage to Ulster Bank. I had to pay a 5k fee!! I foynd Natwest very unhelpful. I don't suppose you know if any of the new legislation would mean I'm entitled to any help with fees back?
I was on JSA for a long time shortly after moving and now I am in maternity leave so the fee has hit me hard. Thanks.

MortgageMamma

Natwest won't penalise you for being on maternity leave, they just need a letter from you saying you are going back to your previous job, on previous salary and same hours etc. They are very laid back about it. Speak to them before you make any decisions. I am told by the BDM that they also don't take childcare costs into affordability calculations.