What would you do

Gladioli

What would you do?

Our fixed term is due to come to an end in June. I earn 30k and my husband earns 20k + 3k part time (TA), our mortgage has around 94k outstanding, the house is worth around 108k

My husband is applying to go to University in September this year (full time so will be giving up work, however part time 3k a year role will keep going), he also has a number (5) late payment markers from 2010, these will fall off by November of this year, one of these marker is for payments that was 2 months late. I like knowing how much money is coming out of our account every month, I would like to fix for as long as possible, especially as his wages are going to drop substantially.

Would you kind people please tell me which of the following options is best and why you think it is best:

Option 1 Allow the mortgage to drop to the SVR which is 4.99% (from 6.5%) and look to fix in September this year, prior to him no longer earning as much money. (is this fraud if we know his wages are about to drop?)
Option 2 Try and get a fix for min 3 years with the markers on his file.
Option 3 employ a broker to do the work for us and see if they can get us a good deal even with his defaults. (I know nothing about brokers, to be honest I don’t even know what they do and how they make money)

Or something else that I have not considered.

Thanks very much for any help or opinions you are willing to give!

betmunch

Option 1. It is fraud if the lender asks if you are aware of any future changes and you don't declare it. However, his income may not be needed for the application.


Option 2. you could do this


Option 3. You could also do this, and likely have a better chance of success due to employing a professional


Brokers have different payment models, they will tell you at the beginning of the first meeting/conversation so you are not commit to one you are not happy with paying. I believe the most common is to take the procuration fee from the lender, plus a modest fee from the client.

kingstreet

Ask your current lender what customer retention products it has for you to consider.

These are usually available without credit, status or affordability checks.

Gladioli

kingstreet wrote: »

Ask your current lender what customer retention products it has for you to consider.

These are usually available without credit, status or affordability checks.

Thanks for this, they are offering discounted mortgage rates rather than fixed deals at the moment. They are small local building society and in the last 6 months I have noticed their long term fixed term mortgages fall by the way side.

Thanks though

MortgageMamma

When you say about missed payments what wasn't paid? did any of them go to default? the type of payment missed and if it's been caught up on or if it goes to default can be looked upon differently by various lenders.

Your mortgage payments should come down now as rates are so much lower than they were when you took this mortgage. There are some really good fixed rates out there presently. Assuming you don't have a lot of outstanding credit there is no reason why it cannot be done solely on your earnings plus the TA.

I do think you should consider seeing a broker/adviser to check out your options, getting some good impartial advice now can save you a lot of money in the long run.

MM

Thrugelmir

Gladioli wrote: »

They are small local building society and in the last 6 months I have noticed their long term fixed term mortgages fall by the way side.

That's the nature of the market at the moment. What products are currently on offer.

Gladioli

MortgageMamma wrote: »

When you say about missed payments what wasn't paid? did any of them go to default? the type of payment missed and if it's been caught up on or if it goes to default can be looked upon differently by various lenders.

Your mortgage payments should come down now as rates are so much lower than they were when you took this mortgage. There are some really good fixed rates out there presently. Assuming you don't have a lot of outstanding credit there is no reason why it cannot be done solely on your earnings plus the TA.

I do think you should consider seeing a broker/adviser to check out your options, getting some good impartial advice now can save you a lot of money in the long run.

MM

He primarily missed paying store cards (4 of them) and also 1 loan payment however that is due to fall off in March of this year, on Noddle they just look like missed payments rather than defaults.


We do have 2.5k on a credit card in my name however this should be paid off in the next 3 months

Gladioli

Thrugelmir wrote: »

That's the nature of the market at the moment. What products are currently on offer.

I am with Monmouthshire Building Society and here are their deals http://www.monbs.com/mortgages/?mortgageType=existing-customers#mortgageTable


I think I will make an appointment with them in the first instance and see what they can offer?