Are you credit checked switching to a new mortgage deal with the same lender?

mummylewis

Coming up to the end of my fixed deal with halifax and want to switch to a new deal. I stand to save £150 a month.
I'm coming to the end of maternity leave too though and worried about passing a credit check/affordability check.
Do they even do them for existing customers?

Thanks

cahillg81

If its a product transfer there is no underwriting involved.

mummylewis

Thank you!

amnblog

There are some occasions where Halifax do run checks again.


I hope these do not apply to you?


Example scenarios are:


Missed mortgage payments/arrears
Lending past retirement age
An element of lending on interest only

cahillg81

But it still wont affect in event of a product transfer if they are offering it.

mummylewis

No, none of those apply to me. Had it 2 years and paid on time every month and it's due to finish when I'm 51.

I rang halifax earlier to ask what my LTV was (79%- which is great because going by what I paid for it, it should be 91%, clearly worth more than I bought it for now!) and the chap said you can switch 3 months early but that you dont actually get the new rate until after the 3 months.

Example, I can switch Aug 30th (fix ends 30th nov) but if I do and it goes through I won't see a reduction in monthly payment until 1st Dec. Why would you be able to switch early if you can't actually have the new deal yet?
He said the 3 months means you can switch without being charged a penalty but who in Their right mind would switch earlier than 3 months, pay a penalty, and still not get a reduction until after the 3 months?!
Thank you for your replies

Thrugelmir

mummylewis wrote: »

Why would you be able to switch early if you can't actually have the new deal yet?

The switch doesn't take effect until the end of your current fixed term. In effect you have a three month window to reserve a new deal. Funds are released in tranches. Once gone they are gone.

mummylewis

That makes sense, thank you!