Mortgage Renewal - Unemployed

palasmy

Hi

Me and my wife have a joint mortgage, we are due for our first renewal in september after the fixed two year term. Unfortunately I'm unemployed now, need some advice on how to approach the renewal phase. My wife is still employed and we have a decent savings that should allow us to continue our mortgage at the current rate for at least another year and I'm quiet hopeful about my status within that period.

what would be the safe thing to do in my circumstances, to avoid complications relating to my unemployment, simply renew online with the current lender or is it ok to shop around for better rate and will I be able to convince the new lender about my status.

Appreciate your advice..

[Deleted User]

You won't be able to remortgage with no income, so look at what your current lender can offer.

csgohan4

if you have the income you can try to remortgage , but if you don't have enough to borrow x4.5 of our gross income, try customer retention products online

muhandis

In your place I would stick to a no-hassle product transfer and stay with the current lender. It involves no checks, etc.

If your fix comes to an end next month, I'm sure you can book your product switch now.

palasmy wrote: »

we are due for our first renewal in september after the fixed two year term.......
what would be the safe thing to do in my circumstances, to avoid complications relating to my unemployment, simply renew online with the current lender

palasmy

muhandis wrote: »

In your place I would stick to a no-hassle product transfer and stay with the current lender. It involves no checks, etc.

If your fix comes to an end next month, I'm sure you can book your product switch now.

Yes, that is my plan, and I really hope they don't query much that way when we can get it done online.

Just to understand, how should I answer a question related to my income in this application (Online) if there are any...

It is really a tricky one, I don't want to lie but at the same time don't want to jeopardise. I guess there will be opportunities in the future to amend my details??

Thanks

muhandis

Don't worry. As long as you are not asking to borrow more or change the term, for a product switch you won't be asked any questions related to affordability or asked for a declaration that your "circumstances haven't changed" etc.

So in short, you won't have to be creative with the facts.

palasmy wrote: »

Yes, that is my plan, and I really hope they don't query much that way when we can get it done online.

Just to understand, how should I answer a question related to my income in this application (Online) if there are any...

It is really a tricky one, I don't want to lie but at the same time don't want to jeopardise. I guess there will be opportunities in the future to amend my details??

Thanks

palasmy

muhandis wrote: »

Don't worry. As long as you are not asking to borrow more or change the term, for a product switch you won't be asked any questions related to affordability or asked for a declaration that your "circumstances haven't changed" etc.

So in short, you won't have to be creative with the facts.

Ok, will keep my fingers crossed and brave it...

SensibleSarah

I've been in this situation - my current lender let me switch products with no checks whatsoever. They are proper old school and everything has to be done by phone or post, no online facilities so I was a little worried their 'human' way of doing things would cause me problems - but no issues at all. I even switched to a much better interest rate so payments came down - which was a relief when I wasn't sure how long until I'd be earning a decent wage again. Fortunately it was just a couple of months in my case.

palasmy

SensibleSarah wrote: »

I've been in this situation - my current lender let me switch products with no checks whatsoever. They are proper old school and everything has to be done by phone or post, no online facilities so I was a little worried their 'human' way of doing things would cause me problems - but no issues at all. I even switched to a much better interest rate so payments came down - which was a relief when I wasn't sure how long until I'd be earning a decent wage again. Fortunately it was just a couple of months in my case.

That's good to know and glad it went well for you. As you put, it is the human intervention in such situations that can potentially be a problem.

I checked the online route and our current LTV has improved and so we should hopefully have a lesser monthly outgoing as well plus the rates are have decreased a bit as well. Although I'm tempted for a longer fixed term, I just don't want to do it yet, will try to keep things same and simple as much as possible.