Returning to study - do I need to inform mortgage company?

Chocoboos

Hello All
Hoping someone will be able to help please I am returning to university to study nursing for 3 years. I bought my house (mortgaged, single owner) when I was 27 and took out a 30-year mortgage with an initial 5-year fixed rate. My company have offered me a rate switch which I will be moving to as my payments will be lower so this will save me money, I do not need to go through any remortgage process, it is simply a case of doing this online via my account.. My loan and bursary (roughly £600 a month) will cover the mortgage payments easily (I will be paying £207 a month) and will even cover most of my household bills and some others (excluding petrol and food). I am taking up as role as casual bank staff and should be able to pick up at least 1-2 shifts per week which will give me a bit more money so in terms of ensuring the mortgage is covered, this is not a problem.

What I really need to know is do I need to tell my mortgage company that I will be a student come October? When I made my application I was in full-time employment and obviously that salary is what allowed me to be accepted for the mortgage. I am worried now that they might not be happy about it as I have no other form of income i.e. no partner, plus my role is only casual. Would anyone know if this could have an adverse impact on my mortgage terms?

Many thanks for your help.

Rafter

You should not lie on an application form. If they ask you if your circumstances are likely to change which could impact your ability to repay then you should declare.


However, given what you have said about just product switching - your confidence about being able to keep up payments etc you don't seem to be under any obligation to tell them.


Good luck.


R.

minimike2

I'm not sure what lenders apply affordability assessments to product switches, if any even do still.

If you are able to complete a non-advised rate switch online and it does not ask you anything about your income, then no, you are not obliged to tell your lender.

There has been a few mutterings about some lenders refusing product switches having applied post MMR affordability rules to them, however I do believe the FCA rightly had something to say on the matter. Maybe some of my broker colleagues can confirm if any lenders are still trying to do this. Either way, it doesn't sound like that applies to your case from what you have said.

Chocoboos

Thanks both, I've checked the rate switch page and there's nothing on there to suggest I need to declare income or any change in job/study so I'll keep it to myself unless requested to update my status.

Thanks again for your help, much appreciated :T