Remortgage Confusion

RockPaperScissors

Afternoon all,

It's been a while since I posted on here but everyone was so helpful when I was a FTB three years ago so I'm hoping you can help me to de-murk my mortgage waters at the moment.

Our three year fix with Lloyds is up at the end of May. Obviously I'm aware that greater affordability checks have been introduced now - II was concerned at the time about these because whilst I have a good job my partner is (or was) self employed in the forestry/utilities industry.

When we first applied for a mortgage it was just to "see" if they would even consider us as his SA302's show only 9k earnings on average each year (my earnings were 25k at the time).

Zoom forward three years and we now have a toddler (so a dependent) and my partner is now in employment earning really good money for the same company he used to work with on a self employed basis BUT it's on a zero hour contract. We know he's safe with them and it's just the way their industry works with contracting but obviously that won't be much help for remortgaging.

I am also working 4 days per week so although my salary is now larger (34k annual with a payrise due in next two months) I am pro-rated to 27k. I would consider going back to full time if it meant we were able to successfully remortgage on a fix though.

A "friend" told us that when our fix was coming to an end it was just a case of Lloyds sending a letter with our options and us choosing the deal we wanted to move on to but obviously I have just called them and they have informed me that it's actually a case of reapplying and them assessing our earnings and expenditure/affordability.

Based on having a dependent now and my OH being on a zero hour contract I'm now really worried that we won't manage to remortgage on a new fix.

Can anyone explain the process for me or offer any sage advice or experience about approaching this with a zero hours contract?

Thanks (sorry for length!)

kingstreet

Establish if customer retention products are available from your existing lender online. If this is the case, you can circumvent the advice process and avoid affordability/status checks.

If you do want to remortgage, that's a new mortgage from a new lender to repay the old one, you will face the same as you did when you first bought, affordability, status and valuation checks.

The customer retention option would be easier, if it's available to you.

RockPaperScissors

Thank you Kingstreet.

I assume because I rang Lloyds and they were the ones that said I would need to reapply for a particular product that it may mean customer retention isn't open to me? Or would I need to speak with one of their advisors to be sure?

Thanks,
Kelly

kingstreet

No, involving a human being (post-MMR) means you are invoking the advice process.

If your lender offers product transfers online (as Halifax the LBG member does) you can do this "execution-only" and avoid involving human beings and then no advice and no further checks are carried out.

RockPaperScissors

Gotcha! Just tried this online - yes they do offer it - and apparently it should take 10 minutes but it keeps telling me that my mortgage account number, postcode or D.O.B are wrong and to go in branch instead. I meet all requirements for online switch so will try and find out why it won't work so I can do it that way instead!

RockPaperScissors

If this doesn't work Kingstreet, do you have any top tips for trying to remortgage with a 0 hour contract? Any lender suggestions?

kingstreet

No. You'll need to appoint your own broker for personalised information like that.

rtho782

Personally, while me and my partner are both salaried, when we went through the application process with nationwide, they did not ask to see our contracts, did not ask if we were on zero hour contracts, they just asked how much we earned and asked for our most recent payslip.

If they ask if he is employed, the correct answer is yes. If they ask his salary, tell them his salary. If they ask for payslips, give them payslips.

No need to volunteer info they don't request!

RockPaperScissors

Thank you - I guess our worry is that whilst that works if you earn the same each month, when providing three months' worth of payslips, each slip would show a different amount. He will always earn at least 2500 per month but some months it's much more and that may immediately indicate that he is on a 0 hours contract as the figure changes.

Thrugelmir

RockPaperScissors wrote: »

Gotcha! Just tried this online - yes they do offer it - and apparently it should take 10 minutes but it keeps telling me that my mortgage account number, postcode or D.O.B are wrong and to go in branch instead. I meet all requirements for online switch so will try and find out why it won't work so I can do it that way instead!

Lenders can decide to review particular customers circumstances if they wish. There are no requirement for online switching. Totally at the lenders discretion.