Remortgaging- credit check?

emmalou68

OK, so my boyfriend just realised he missed a credit card payment and has been charged for it. he stopped a dd from our joint account as just wanted to pay it out of his own account but in the change over missed a payment and didn't realise. all paid up now and he is going to call and apologise/ explain.

our mortgage deal ends in a year (yes i know this is a bit of advanced planning!) and obviously would then want to remortgage. will this missed payment affect things in a big way?

our situation is that we have c.50% equity in the property, the mortgage amount is only 2.8 x joint salary and we don't have any debts, no other credit etc. my credit history has always been excellent, his has been good as well apart from this recent blip- although we haven't checked our scores in a while.

one other complication is that we have a baby on the way and will be looking to remortgage when one of us is on parental leave. we both intend to go back to work full time but will obviously then have childcare costs to consider.

anyway, bit of a ramble but just wanted to get a sense of what things will be like when it comes to remortgaging.

we are currently with nationwide so I was wondering whether they check credit scores if you are remortgaging and sticking with them?

thanks in advance for the advice!

densol_2

If you are just going online with Nationwide and picking a new deal yourself, there are no checks etc. If you are going into branch for advice, extending the term or asking for more money, then they do the full affordibilty test etc. Also when I picked my new deal, I could swap 3 months early ( and you can pick it 4 months early )

Regarding the missed payment, when he calls them see if they will take it off the credit ref agency markers. It doesnt hurt to ask and explain what happened, they can only say no.

emmalou68

yes that was what i was thinking, see if he can charm them.

i will bear in mind switching online, and actually doing it a bit earlier might be an idea as well. I think we would be in a good position anyway as we do well on affordability but good to know we can just do it online- i hate having the thought of it hanging over my head all this time!

Dandytf

emmalou68 wrote: »

yes that was what i was thinking, see if he can charm them.

i will bear in mind switching online, and actually doing it a bit earlier might be an idea as well. I think we would be in a good position anyway as we do well on affordability but good to know we can just do it online- i hate having the thought of it hanging over my head all this time!

Online was very simple via Natwide.

I'm planning my next online fix next summer when my 5yrs fix ends Aug17 (I'll decide and apply online 3 mths before)

Online gives you lots of options before you complete the online app -very simple, though not sure if rates will rise next year, I reckon there's a slim chance though that's just my thoughts with Euro vote in a few weeks.(Which may not have anything to do with interest rates, though I've been reading and watching Americas rates, who look to be determined to move to a'normal' upward trajectory over next few months, if not certainly from early 2017

emmalou68

so you didn't have to do a credit check when remortgaging online with nationwide either?

Newbiebuyer2016

Parental leave isn't a complication, you just have a return to work letter and I just said I had family childcare at no cost. Easy!

Dandytf

emmalou68 wrote: »

so you didn't have to do a credit check when remortgaging online with nationwide either?

No, not whilst changing from initial 3 yr fix with Natwide to 5 yrs fix with Natwide.

Choose new Natwide existing customer mtg -2 mins online,

emmalou68

Dandytf do you think it is worth switching earlier rather than later then with regards to interest rates? Our deal is up in April but we could switch beginning of Feb. Interesting to know your thoughts!

Thrugelmir

Fixed term products carry an ERC (early redemption charge) which may well negate any benefit by doing so.

Dandytf

emmalou68 wrote: »

Dandytf do you think it is worth switching earlier rather than later then with regards to interest rates? Our deal is up in April but we could switch beginning of Feb. Interesting to know your thoughts![/QUOTE
I cannot make that decision for anyone other than myself.

I personally will be switching to a new Natwide deal 3 mths early, to ensure I know what my payments are for the chosen fixed rate.

Nat wide online switching is excellent, though note it won't allow switching until 90 days exactly prior to your existing deal ending, think I switched a few days later last time cause i'm working.

Please consider if it's worth while 'counting' overpayments to your chosen deal which I've been making for approx 3 yrs upto 60 quid per month on top of existing mtg payment.

fixed rates are only 1 example of mtg type.

My term will be approx 17 yrs remaining though if rates stay the way they are I can reduce this to a 10yr fix next year.

e.g. existing mtg 363 approx -I've been paying 400 for 3 yrs approx.

Nat wide 10 yrs fix will be as things stand on remaining balance 47k 450 10 yrs.

This all depends on rate rises, I won't go as high as 500 though if it's around the 450 mark I'll take the 10 yr fix and look forward to home improvements from 2019 and later.

Dandytf

Thrugelmir wrote: »

Fixed term products carry an ERC (early redemption charge) which may well negate any benefit by doing so.

Exactly, useful if one plans to move home