Mortgage quandry

robthesnapper

I've just had a letter in from Northern Rock stating my 5 year fixed interest rate deal will end in December. The rate will then switch to their standard variable rate and in doing so will jump about £150 per month.

Had I still been in full time employment I would simply get another deal from NR or somewhere else, but I was made redundant in August and have since started my own business. It's going well, but obviously my income is dramatically lower at the moment and probably will be for the first couple of years.

So, what's the best thing I can do? I've never renegotiated a mortgage before so I'm not sure of the best way to go about it. Do I tell them of my change in circumstances? I'm worried that if I do I'll never be able to get another deal.

I should point out that while I'm up to my eyeballs in credit card debt I've never missed any payments either on them or the mortgage. I have enough money in the bank from the redundancy to last me another 9-12 months (presuming no other income, which there will be from the business, but coming in slowly).

Thanks
Rob

Mr_helpful

robthesnapper wrote: »

I've just had a letter in from Northern Rock stating my 5 year fixed interest rate deal will end in December. The rate will then switch to their standard variable rate and in doing so will jump about £150 per month.

Had I still been in full time employment I would simply get another deal from NR or somewhere else, but I was made redundant in August and have since started my own business. It's going well, but obviously my income is dramatically lower at the moment and probably will be for the first couple of years.

So, what's the best thing I can do? I've never renegotiated a mortgage before so I'm not sure of the best way to go about it. Do I tell them of my change in circumstances? I'm worried that if I do I'll never be able to get another deal.

I should point out that while I'm up to my eyeballs in credit card debt I've never missed any payments either on them or the mortgage. I have enough money in the bank from the redundancy to last me another 9-12 months (presuming no other income, which there will be from the business, but coming in slowly).

Thanks
Rob

If you ask them nicely they will probably offer you a new deal. You could possibly do a self cert remortgage if it was better for you.

raq

we had to do a self cert this time around as my husband only this year has gone self employed. Paid a little bit more but by the next time we change over at least we will have 3 accounts book's at the ready.

sarkin

You could fast track not that I would ever recomend that you over inflated your income

robthesnapper

Thanks folks. What happens you do do the 'self cert' thing for a mortgage? I only registered as SE in the summer so I've go no track record to show nor can I predict how much I'll earn in the next year.