Difficult early remortgage decision!

AnotherJoe

My daughter was able to remortgage with NW when her existing NW fixed period ended without any affordability checks she just selected the new deal.

SouthLondonUser

phillw wrote: »

By knowing that you may find it difficult to pass affordability checks in the future and you don't tell them when you're applying then it's fraud.

Well, it depends. If you lie or withhold crucial information about something that is certain, yes, it's fraud. If you know your employer will move abroad in 2 years and you're likely to lose your job and don't disclose it, yes, it's probably fraud. But very few things are black and white. Many people will be facing uncertain situations and they will have a concern about a risk that's hard to quantify.
If I am worried that my employer is losing market share to competitors and might start firing people in a few years, I wouldn't say it would be fraud not to disclose it. How would a bank prove that? Your honour, my client knew that there was a probability he might lose his job?

At least that's my two cents as a non-lawyer. I'd be interested in the feedback of those who know more.

PS Yes, btw, not every lender asks if your circumstances have changed if you change deal with them

getmore4less

You can't know what the affordability checks will be in the future.
You don't know what your income will be in the future.

Taking steps to reduce the contractual payments can be a good option, one of the reasons it is often said go long on term and overpay rather than a shorter term to retain flexibility.


Since the OP's goal is to gain the option to have a lower payment going long on term makes more sense than shortening to 30y if they did switch or stay

The ditch the fix option(subject to the total fees and lender) is close enough to break even, with the additional benefit lock in to a decent rate for 3y3m more compared to the current Nationwide options.

What has not been said is who the new lender are and their retention deal options are important as if the OP does have reduced affordability they will be stuck with that lender.


Most lenders will allow retention deals on execution only with a desktop valuation for LTV.

The trick is to make sure you have one of the better ones even if it costs a bit more.

(eg not Halifax who tier their rates higher for smaller mortgages)

Macaque

Thank you for the responses.

The new deal that we would be looking at is with Barclays, who seem like a fairly good provider but not sure what they are like with retention deals?

One of the key factors for us is that they need to be part of the Armed Forces Covenant due to the likelihood of having to rent our property at some stage in the future.

getmore4less

What additional fees does that rate come with?

The no fees one are great escapes and higher rates.