Renewing Mortgage **HELP**

Dhrucku

Hi,

Both myself and my partner have been making repayments on a mortgage since November 2015 without missing one.  We are now approaching the end of the 5 year and with the current situation are both unemployed (I finished my last contract at the end of February (LTD Company Director) and my partner was asked to leave her temporary job at the end of March and has had 3 months of furlough).  

We mortgage through HSBC and were wanting to know what options are open to us with no funds coming in currently although we do have a significant amount saved up which we really don’t want to use up.

Does the HSBC renewal ask for further details such as income streams currently because if so we’d be in trouble!  We have around £165k left outstanding on it at the moment.  Anyone know the usual process for HSBC?

Aim is to get jobs by renewal date but wanted to prep before we get close to this date. 

Dhrucku

To illustrate further :

62 months at fixed rate of 2.69% - £1099.12

175 months at variable rate (not sure what HSBC is at the moment previous paperwork says 3.94%) - £1195.29 

Another question is are we able to pay the variable rate for a few months and choose to leave it when things become more favourable (sticking with a HSBC product)?

I feel like this is very unfortunate timing and beginning to panic...

dimbo61

Have you look on the HSBC website for new deals for existing customers ?
You can normally sign up/apply  online for a new deal 3 months before the old one runs out.
As long as your not changing anything !
Trying to borrow more or extend/reduce the term it can be done all online with No questions or credit checks.
So as long as your not in arrears ? You can simple pick a new deal.

Dhrucku

dimbo61 said:

Have you look on the HSBC website for new deals for existing customers ?
You can normally sign up/apply  online for a new deal 3 months before the old one runs out.
As long as your not changing anything !
Trying to borrow more or extend/reduce the term it can be done all online with No questions or credit checks.
So as long as your not in arrears ? You can simple pick a new deal.

This is the best news I’ve heard in a while - aim is to keep things the same as no changes have been made.  If I can find a lower rate or lower the term for the same as I’m paying now then that’s even better!

Will indeed check it out.

Dhrucku

In general once the fixed term is over and you move on to the standard variable, can you change product with the same provider once things become favourable or are you committed (eg 175 months as per the above)

RetSol

Normally, once the fixed term ends, you can remortgage with another lender or remain with the existing lender.  And you can move off the SVR if the existing lender will let you have a new, better deal (either immediately or whenever suits you). You are no longer committed to the deal or the lender.  You need to check your mortgage conditions though.  You do not say that you are having difficulty paying the mortgage or that you anticipate having difficulty paying the mortgage in the foreseeable future.  Your biggest difficulty, for the time being, seems to be with your income rather than your outgoings.  However, whatever you do about the mortgage deal,  if you do anticipate having difficulty in making the payments, you need to speak to your lender - https://www.moneysavingexpert.com/mortgages/mortgage-arrears-help/.  

Dhrucku

RetSol said:

Normally, once the fixed term ends, you can remortgage with another lender or remain with the existing lender.  And you can move off the SVR if the existing lender will let you have a new, better deal (either immediately or whenever suits you). You are no longer committed to the deal or the lender.  You need to check your mortgage conditions though.  You do not say that you are having difficulty paying the mortgage or that you anticipate having difficulty paying the mortgage in the foreseeable future.  Your biggest difficulty, for the time being, seems to be with your income rather than your outgoings.  However, whatever you do about the mortgage deal,  if you do anticipate having difficulty in making the payments, you need to speak to your lender - https://www.moneysavingexpert.com/mortgages/mortgage-arrears-help/.  

Sounds to me like the SVR is there to rip you off until you can find a better deal either with the incumbent or another supplier once things become more favourable!  I do see the very small amount of benefits for it though e.g. flexibility and overpayments.

Is there ever a case where a bank can offer you a fixed deal and then once that is over and you are not in a position to remortgage (due to the circumstances I've mentioned above) mandate you move on to the SVR for the duration and lock you in?  I'm assuming that's what you mean by checking mortgage conditions...seems really unfair (surely my bank HSBC wouldn't do that?!)...In what cases would the lender not let you come off an SVR?

We have a good amount of savings which is the reason why I'm not worried about paying things off, it's just the initiation of a new deal that is making me nervous.

Finally the following is mentioned on their portal:

• You can agree your mortgage rate up to 12 weeks before your current rate ends
• We won't need to check your credit rating as you're an existing mortgage customer

Does the last point mean that no statements, invoices and other proof of income is required?  Why do banks not do this as it is a new product and surely it's in their interest to check people's likelihood of being to pay - a lot changes in 5 years evidently
As long as they get paid and there's been no arrears I guess it looks like they're happy to just roll you over into an equivalent deal which is where I'd like to be.

Dhrucku

Bump please

Anamox

I've only renewed with Nationwide and Halifax, both were straight forward and online. The Halifax one I sat on the variable rate for a bit as my deal ended and I wasn't sure if I was moving for a job, I could still apply for a new deal as an existing customer with ease.

BUT, both lenders asked the question "has anything changed since your original application" or something along those lines, I believe it referred to salary, bonuses, overtime, dependents etc... luckily for me nothing had changed, Halifax didn't care and trusted me but Nationwide requested 3 months of payslips from me to prove continued employment.

getmore4less

whats your LTV

Dhrucku

getmore4less said:

whats your LTV

60%