Fixed deal ending, remortgage advice

matt1983

Im hoping to get some advice and for some answers to questions regarding what i should do when my fixed mortgage deal ends next year. 

My partner and I bought our first home in July 2016, taking out a 5 year fixed mortgage deal at 2.69% with Nationwide.  We borrowed £210’000 and put down a £80’000 deposit. At the time, we were both in full time permanent contract jobs earning roughly £24’000 each per year. 

My main question is regarding the fact that my partner left her job in 2017 and i have been paying the full mortgage payments since then. How likely is it that we will be able to remortgage next year given that in my partners new part time job she is only earning between £10 and £15’000 per year. 

Am i right in thinking that if we try to remortgage with a new lender, they would want to see pay slips and conclude that we cant afford the mortgage payments- despite the fact that i have been paying the mortgage alone for 3 years and have not missed a payment, and a new mortgage deal would almost certainly be on a lower rate with lower payments. 

Would a potential way around this problem be to switch deal with our current provider, who might not ask to see pay slips etc? 

I hope this has all made sense. Im trying to get answers to these questions now so that we can know in advance of next year what the situation is going to be, and whether or not my partner will have to try and get a full time job again (she does not want to do this due to stress levels and other factors). 

Any advice/answers would be greatly appreciated. 

penners324

check the product switch rates offered by Nationwide. They will be on their website.

For that value mortgage probably more cost effective anyway than paying all the remortgage fees.

Thrugelmir

Affordability from the lenders perspective is based on what if scenarios rather than historical data. In particular that of rising interest rates. Your best option may well to remain with your existing lender. Apply online then no further checks will be conducted. £34k income pa is unlikely to allow you to remortgage in the current climate given the size of debt you owe. 

SouthLondonUser

How much do you owe now? Circa £ 180k?
How stable are your jobs and your incomes? Do both of your incomes fluctuate a lot? 
If you are on £24k and she is on £15k, then a £180k debt and a £39k combined gross income means a 4.6ish income multiple. You should be able to check on most lenders' websites how much they are willing to lend (although that is just an indication).

However, most lenders typically let you choose a new fixed-term deal if you remain with them without the need for a new underwriting. If they ask you whether your circumstances have changed and you say no, that would be mortgage fraud, but many lenders don't re-underwrite you and don't ask you that if you remain with them but switch to a new deal once the current one expires.

matt1983

SouthLondonUser said:

How much do you owe now? Circa £ 180k?
How stable are your jobs and your incomes? Do both of your incomes fluctuate a lot? 
If you are on £24k and she is on £15k, then a £180k debt and a £39k combined gross income means a 4.6ish income multiple. You should be able to check on most lenders' websites how much they are willing to lend (although that is just an indication).

However, most lenders typically let you choose a new fixed-term deal if you remain with them without the need for a new underwriting. If they ask you whether your circumstances have changed and you say no, that would be mortgage fraud, but many lenders don't re-underwrite you and don't ask you that if you remain with them but switch to a new deal once the current one expires.

Yes thats one thing im worried about if we do stick with Nationwide and switch, and they ask if our jobs/income are the same.  I would feel very uncomfortable lying about that! Especially if it was over the phone and not in an online form. 

Yes current mortgage balance about £180ish. 

 

matt1983

Thrugelmir said:

Affordability from the lenders perspective is based on what if scenarios rather than historical data. In particular that of rising interest rates. Your best option may well to remain with your existing lender. Apply online then no further checks will be conducted. £34k income pa is unlikely to allow you to remortgage in the current climate given the size of debt you owe. 

According to the Nationwide website if i was to try and switch deal with them before my fixed deal ends, i would have to do this over the phone, as well as pay a 1% early repayment charge. 

Does anyone know if once my deal ends, i can switch deal online with Nationwide without having to speak on the phone with them?