On benefits and fixed term ending this month

Snowor

I'm sure this is simple but I've not found it so.

My household are on benefits, pip & income support etc. We had savings upon transitioning to benefits due to illness and now budget to pay it within our benefits. We have kept up our mortgage payments and actually overpaid (we aren't exactly getting out much to spend atm)

Our fixed rate ends at the end of this month and I believe goes from 1.75 to 4.24 based on halifax SVR.

Considering we have no wage coming in, only benefits, but have been overpaying, what options do we have? Would any lenders take us on, including calling up halifax for a new better rate fixed?

Bit nervous about this all hence asking before trying anything

Thanks in advance x

haras_nosirrah

You will be able to product transfer with Halifax as long as you are not in arrears.
Brokers get slightly different products to direct to lender and as there is no affordability assessment your income isn't an issue.

As a broker we do a lot of product transfers for people as our rates are cheaper than direct (especially on larger loans) and we don't charge a fee.

Exodi

My thoughts below:

Snowor wrote: »

My household are on benefits, pip & income support etc. We had savings upon transitioning to benefits due to illness and now budget to pay it within our benefits.

You will need to ideally speak to a broker to indicate if you'd meet affordability on the new mortgage. If your mortgage payments are more than 1/3rd of the money you have coming now in it's unlikely.

Snowor wrote: »

Our fixed rate ends at the end of this month and I believe goes from 1.75 to 4.24 based on halifax SVR.

This should have been considered months and months ago. Obviously nothing you can do it about it now but something to note in future.

Snowor wrote: »

Considering we have no wage coming in, only benefits, but have been overpaying, what options do we have? Would any lenders take us on, including calling up halifax for a new better rate fixed?

To be honest, I'm not sure how Halifax will react to the previously undisclosed change to circumstances. They may offer to transfer your mortgage as you've been a good borrower thus far.

Retired_Mortgage_Adviser

Please don't stress too much. As long as you have been servicing the mortgage properly (making payments on time and in full), you should have no issues doing a product transfer (staying with Halifax and moving to a new fixed rate). You can do this through a broker, or direct with Halifax online, or over the phone.

Doing a product transfer through the lender is literally a 5 minute job and this will not ask for any documentation, any income/affordability questions or any questions about change of circumstances, etc. You don't need to volunteer any information in this regard.


You should check with a broker as well as they could give you better rates than going direct, even for product transfers. Any info/documents that the broker requests for a product transfer will be for their compliance and not for the lender themselves so again, affordability isn't an issue.

Good luck!

Snowor wrote: »

I'm sure this is simple but I've not found it so.

My household are on benefits, pip & income support etc. We had savings upon transitioning to benefits due to illness and now budget to pay it within our benefits. We have kept up our mortgage payments and actually overpaid (we aren't exactly getting out much to spend atm)

Our fixed rate ends at the end of this month and I believe goes from 1.75 to 4.24 based on halifax SVR.

Considering we have no wage coming in, only benefits, but have been overpaying, what options do we have? Would any lenders take us on, including calling up halifax for a new better rate fixed?

Bit nervous about this all hence asking before trying anything

Thanks in advance x

Retired_Mortgage_Adviser

I hope you're aware that, for a non-advised product transfer, Halifax will not do any income/affordability checks, the question of any change in circustances does not arise.

It would only come into the picture if the borrower wanted additional borrowing or a change in term.

Exodi wrote: »

To be honest, I'm not sure how Halifax will react to the previously undisclosed change to circumstances. They may offer to transfer your mortgage as you've been a good borrower thus far.

NJamesN

Just go on to the Halifax website and do a product transfer. It takes all of 3 minutes and will not ask for any details regarding your income. You could be unemployed, broke, etc.

It isn't complicated at all, if you can register and post on the MSE forum, it should be easy.

See here for step by step instructions
https://www.halifax.co.uk/mortgages/existing-customers/switch-to-a-new-deal/

If you do choose to do it over the phone, remember that you do not need to offer any information regarding your finances.

Snowor wrote: »

Our fixed rate ends at the end of this month and I believe goes from 1.75 to 4.24 based on halifax SVR.

kingstreet

Retired_Mortgage_Adviser wrote: »

I hope you're aware that, for a non-advised product transfer, Halifax will not do any income/affordability checks, the question of any change in circustances does not arise.

It would only come into the picture if the borrower wanted additional borrowing or a change in term...

... or there is any element of interest-only or lending into retirement, IIRC.

Snowor

Thanks everyone.

I went on halifax online and it said call them. I have called halifax and things escalated and before I knew it I was speaking to someone else that wanted my income and all the rest. In the end I've been offered what the website offers, 2.89 percent. I guess finding a broker next

haras_nosirrah

Hi

How much is the mortgage and what is the property value.

I can then see if the broker version is cheaper?