First direct: end of fixed rate/execution only?

leechunsonnn

Hi, forgive me if this ends up being long winded.

We bought out house five years ago, value £130,000 mortgage £110,000, we have just over £100k outstanding, houses similar to ours are now selling for £170k on this street.

At the time we were in well paid jobs, since then my husband has switched to a new job that he loves as well as part time post graduate study, so earns less. We self fund the study, and the last of the fees are paid now so that's bloody nice.

I quit my stressful part time job, to try a less stressful stop gap job to becoming self employed. That is just starting off and business is building slowly but surely and by Christmas I think my earnings will be on a par with my old job. We earn enough to cover all of our outgoings and live modestly. If you put that into a mortgage calculator though, computer would definitely say no.

We are now at the end of our fix, the letter we have gives just picking a product and calling up to ask for it as an option. Will this involve all new checks or is this just an existing customer product switch?

I know the LTV on a straight product switch is less good, but it's a lot better than the standard variable rate.

Anyone with experience able to shed some light on this for us?

Thank
<a href="fb.com">Cristiano</a>

Lotak

Generally, if you're staying with the same lender and simply doing a product transfer, i.e. not borrowing any more and not changing the term, they should allow you to switch without testing for affordability.

This is now common practice, but I'm not 100% sure if all lenders do this.