Renewing Mortgage **HELP**

Durban

Have you looked at the product transfer rates for existing customers?

Best thing to do is to do a product transfer at a good rate.  You have a good LTV.

HSBC will allow you to do it all online.

I regularly do product transfers and have never been asked for my pay slip.  That is with the Coventry

getmore4less

60% LTV product transfer look like these are available
2y 1.14% £999 fee
5y 1.39% £999 fee

Sistergold

Anamox said:

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.

This is interesting 🧐 so if you had sent payslips and you are not earning enough or said you were no longer working and therefore not earning at all what was Nationwide going to do as you were not defaulting? It’s really does not make sense for your existing lender to ask for payslips when you are not changing anything! 

Thank God my bank makes it clear they don’t need proof of anything. No one needs stress every time they need to remortgage as your existing lender is your point of comfort when you are in a bit of a tight situation and you want to sit tight but want to avoid higher interest. 

Dhrucku

Durban said:

Have you looked at the product transfer rates for existing customers?

Best thing to do is to do a product transfer at a good rate.  You have a good LTV.

HSBC will allow you to do it all online.

I regularly do product transfers and have never been asked for my pay slip.  That is with the Coventry

getmore4less said:

60% LTV product transfer look like these are available
2y 1.14% £999 fee
5y 1.39% £999 fee

Thanks and I’m aware of both of those points, my concern (smaller now I’ve mentioned here) is that come renewal time HSBC ask me and my partner for proof of income for the 5y 1.39% renewal.  If so, I would be forced to just go on the SVR until a time I’m ready to take a new deal with them - I will stay with HSBC.

My question is how likely is the above.

Dhrucku

Sistergold said:

Anamox said:

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.

This is interesting 🧐 so if you had sent payslips and you are not earning enough or said you were no longer working and therefore not earning at all what was Nationwide going to do as you were not defaulting? It’s really does not make sense for your existing lender to ask for payslips when you are not changing anything! 

Thank God my bank makes it clear they don’t need proof of anything. No one needs stress every time they need to remortgage as your existing lender is your point of comfort when you are in a bit of a tight situation and you want to sit tight but want to avoid higher interest. 

My point exactly.

I am 60% LTV, never defaulted, never missed a payment and have savings that could cover me for several years of mortgage payments, it’s just unfortunate that I don’t have a job at the moment and my partner is on furlough.  

Strictly speaking I am not worthy of the mortgage as my current financial liquidity standing shows a bad outlook.  

However from what’s been said I’m due to get a reminder from HSBC allowing me to go online and change my product to the one a poster mentioned above no questions asked - happy days.

However the pessimist in me feels worried.

Quick question do substantial savings that prove I’m able to pay 5 years of mortgage count as leverage to taking a new product as I don’t remember doing that (and didn’t have any!) when I first applied.

I do feel like I’m over egging this a bit and don’t want to come across as a wet pessimistic bloke but I guess I need some reassurances as I can’t really approach HSBC and be like ‘not got a job and partners on furlough but I still want to borrow a six figure sum, you cool with that?’

Sistergold

My dear you will not need to prove anything and if they ask you for the dreaded proof you just keep quiet stay put and go on their variable rate until further notice it will still be better than rental as you will be in your own house. So don’t stress! There are worse things than the variable rate! 

Hopingforthesimplelife

We are with HSBC and our fix is up soon. I charged the rate online yesterday and haven’t been asked for anything 

Thrugelmir

Dhrucku said:

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! 

SVR's remain high as are set at levels where interest rates should be, if times were "normal".  The effects of the GFC were always going to take decades to unwind. 

Dhrucku

Just to close this one off as it may be something that someone else asks.
HSBC sent me a letter exactly 3 months before renewal showing estimated LTV and all rates associated with my mortgage ranging from 2-5 Year Fixed / Variable,  The only thing I'll have to do is give them a ring as both homeowners (me and wife) need a login to sort, the rest will be done online.

I'll be picking the 5 year fixed Standard at 1.49% with a £999 booking fee which seems a great rate, although I'll need to check it is portable as it's likely I move house during that time.