Do mortgage providers vet existing customers for renewal?

five_o

Hi

Hope someone can answer my question. Upon expiry of mortgage deals, do mortgages providers switch existing customers to new mortgage products without going through income checks or do they insist on going through the checks all over again?

The reason I am asking is that I am in a permanent job but intend to go back into contracting before my current mortgage deal expires and I know how difficult it can be to get a new mortgage as a contractor (especially without at least 2 years of accounts).

Thanks,

Schoolworker

I fixed a mortgage deal last June and with the same lender and had to go through a 2hr phone call where they asked lots of financial info on your outgoings etc before stating that they recommend we went for a 5yr fixed which was what we wanted to do.

~Beanie~

My fied rate came to an end recently (with Halifax) and I switched to a new product online with no 2 hour phone call or credit check. I think most lenders are the same as long as you are not borrowing more or changing the term./

westv

~Beanie~ wrote: »

My fied rate came to an end recently (with Halifax) and I switched to a new product online with no 2 hour phone call or credit check. I think most lenders are the same as long as you are not borrowing more or changing the term./

I'm with Skipton and their website says I'll need to call them when my fixed rate ends next year.

anna42hmr

My fixed rate ends in the next couple of weeks so have being going through the product transfer with my current provider (TSB) I just logged into my online banking where if you select the mortgage account it then has links to start a product transfer. It took less than 10. Minutes online and allowed me to select the new product and confirmed the rates available to me based on ltv. They then emailed and posted an illustration and declaration a couple days later to read, sign and return. I have since then received confirmation that it will be in place for 1 December and the new direct debit amount etc.

amnblog

Perhaps the most comprehensive answer is technically 'no', practically 'perhaps'.

It depends on the process(es) the Lender makes available to you.

Who is yours?

csgohan4

A lot of lenders provide retention products online where they don't credit check you on remortgage.


However if you change lender you will expect a similar process to when you got a mortgage in the first place.

Thrugelmir

Top line is lenders can impose a check if they wish.. Though it's not mandatory. Those that do tend to do so for historical reasons or it's related to the nature of their target customer market.

If you involve them in the process of choosing a new product. Then yes. They'll do so to cover themselves under the regulations they operate as mortgage lenders.

If you choose and apply online. Or are given a list of options that you select a product from. Then no.

By switching product you don't apply for a new mortgage. By default at the end of the current product term. Your mortgage reverts to the lenders SVR. Providing you maintain payments the mortgage is paid off at the end of the full initial term.