Reduced income and mortgage

Tainted_love

Hi,

I am wondering if anyone can help. I am currently on maternity leave after my 3rd child. We have recently bought a new house and the mortgage is nearly the maximum that the bank would give us based on mine and dh salaries.

I really want to get a different job after mat leave, I am a qualified health care professional and find the stress of the job is getting way too much and I wish to get another job which unfortunately will pay considerably less. We have done the maths and still could easily afford the bills but would have less disposable income each month.

However, I am confused about what happens to the mortgage once our 2 year fixed deal ends and we want another deal and my income is lower?

Thanks

kingstreet

A remortgage to a new lender will require new affordability checks.

A customer retention product from your existing lender probably won't.

Tainted_love

Thanks so we could potentially move to another deal with the same provider without checks?

If that is not possible then what would happen? Would we have to stay on the standard variable rate that the fixed deal would then automatically revert to?

muhandis

Tainted_love wrote: »

Thanks so we could potentially move to another deal with the same provider without checks?

Yes, with the caveat that the product switch process has to be done online without any advice received from the lender.

Tainted_love wrote: »

If that is not possible then what would happen? Would we have to stay on the standard variable rate that the fixed deal would then automatically revert to?

If a non-advised product switch were indeed not possible, your options would be to stay on the SVR or try and remortgage to another lender.

Tainted_love

Thanks for your reply, fingers crossed that we can switch online with no checks!

Glover1862

What lender are you with, not all lender offer a switch. For example coop bank will allow a switch, platform ( also part of coop) won't.

Tainted_love

We are with HSBC