Feeling really worried

carlos700

I am really worrying at the moment and need some advice /reasurrance .

We have our morgage with Intelligent finance and i have just gone onto a fixed rate for 2 years .I have just received the letter saying what the payments will be for the next 2 years and then what they will go to after that when we go onto variable rate .The payments after the fixed rate ends will go up nearly £200 per month .

When i applied for this fixed rate i had to send wage slips etc to them as if we were applying for a new morgage (We had a tracker with intelligent finance ).My worry is i have just had to give up my job to look after children (childcare to expensive ) so we now have a drop in income what worrys me is in 2 years when we want to go back onto a fixed rate they may decline our application because we are earning less .

Why did i not fix it for 5 years i really regret it now .

Conrad

You highlight an important topic.

2 year remortgage products are not suitable for most people. Mortgage brokers in particular are in for some nasty shocks. They are meant to fulfil thier duty to discharge 'the most suitable advice' for a clients needs.

It will be difficult for them to justify clients having to pay remortgage fees and interim interest (can be up to 4 weeks extra interest) when the muppet 2 year deal expires.

As far as answering your own worries, did you know you canopt for the mortgage to be Interest Only at any point which will recue the outgoing? Not ideal, but better than defaulting and you can switch back to a capitakl repayment when your finances are more robust.