Switching to new mortgage when inbetween jobs

Dumpling63

Hi. I was made redundant at the end of April and have been taking some time off. My current 2 year mortgage deal comes to an end in the next few weeks and I need to switch to a new deal. My question is do I come clean with the Halifax and tell them about my current situation or go through my orginial mortgage broker (who organised my mortgage 2 years ago) who tells me that they will no ask for pay slips if done through a broker. My property is worth £650k and my mortgage is 127k for the next 11 years. I'm 54...I do intend to get a new job but wasn't planning on hurrying as I'm OK for a few months and my partner is working.(Note the mortgage is just in my name) Any advice would be appreciated!

TrickyDicky101

Hi

If you go for a customer retention product with the same lender (Halifax) then they won't reassess you for affordability. You could do these online yourself (assuming Halifax provides such an interface) without involving the broker.

This is assuming you are not also wishing to amend the amount borrowed or the term to maturity.

Does your broker charge you a separate fee for his service?

Dumpling63

Yes the broker will charge £295. I can do it online but need to agree to documents that state that I will allow the Halifax to contact HMRC so they will be able to see that I have not been working for a few months.

Dumpling63

Amount borrowed and term to maturity will stay exactly the same

TrickyDicky101

Unless there is something particular about your mortgage (say an interest-only element) then agreeing to Halifax being able to contact HMRC is very different from them actually doing so - especially as they make a decision within 48hours whether to make an offer.

£295 is completely reasonable for a new mortgage application (and whatever commission they get from the lender too). But for a retention deal where they will likely just hit the 'Send' button for you? It's moeny for old rope in my opinion.

Dumpling63

I'm inclined to agree! It takes 10 minutes to do it online. The argument from the broker was that they won't be asked to show any supporting information such as pay slips or bank statements. Halifax had already sent me documents for the new mortgage product but I was worried they would ask for evidence...

amnblog

Certainly potentially more controlled via a Broker but you do not have to use the same one that did the original deal.

Thrugelmir

Dumpling63 wrote: »

The argument from the broker was that they won't be asked to show any supporting information such as pay slips or bank statements.

When employing any professional person for their services. There's a line to be drawn in my mind. Between those that are actively on the clients side and act in their best interests. Or those that primarily act in their own. In this instance sounds like the latter. Just a passing thought. Might be ok in this instance but where else would they bend rules in the future which would be my concern.........