Remortgaging following redundancy and starting new contract

moozie_2

Hello and thanks in advance for any advice
My current fixed rate mortgage deal comes to an end at the end of January. I am currently paying £905 and it will go up to £1,095 on the SVR.  I have not missed any payments and my credit history is excellent. This jump will stretch my budget and I am hoping there is a way to avoid it.
By way of context, I was made redundant in May 2020 and eventually managed to secure a 6 month contract in October. It is likely the contract will be extended but not had that discussion formally yet. I contacted L&C, who helped me with my mortgage previously, and they advised me that remortgaging is not an option without a longer contract or permanent employment. I wondered if anyone else in similar position or any mortgage advisors might have anything else to add to help?

MFWannabe

What other fixed rate deals is your current lender offering? That’s the easiest way to go as no credit checks etc 

K_S

@moozie_2 If a broker has looked at your case and a remortgage isn't possible, you best bet is a product transfer/switch - changing to a new product but staying with the same lender. This usually involves no affordability checks, income verification, credit checks, etc. and is usually a matter of a few clicks or a short phone call.

If the L&C broker didn't mention this option (brokers can do product transfers too for most mainstream lenders), you're probably with a direct-only lender like Lloyds, YBS, RBS, etc. Who's the lender? 

If your fix is coming to an end in January, you should have got a letter or secure message from your lender outlining your options. If not, just give them a call.

Good luck!

moozie_2

K_S said:

@moozie_2 If a broker has looked at your case and a remortgage isn't possible, you best bet is a product transfer/switch - changing to a new product but staying with the same lender. This usually involves no affordability checks, income verification, credit checks, etc. and is usually a matter of a few clicks or a short phone call.

If the L&C broker didn't mention this option (brokers can do product transfers too for most mainstream lenders), you're probably with a direct-only lender like Lloyds, YBS, RBS, etc. Who's the lender? 

If your fix is coming to an end in January, you should have got a letter or secure message from your lender outlining your options. If not, just give them a call.

Good luck!

Thank you very much, I had no idea this was an option.  I am with Barclays and L&C arranged the mortgage two years ago. I just read the recent L&C email again and there is no mention of this at all.
I have not had any contact from Barclays yet but will now call them to find out what new product they have.
Really grateful, thank you!

K_S

moozie_2 said:

K_S said:

@moozie_2 If a broker has looked at your case and a remortgage isn't possible, you best bet is a product transfer/switch - changing to a new product but staying with the same lender. This usually involves no affordability checks, income verification, credit checks, etc. and is usually a matter of a few clicks or a short phone call.

If the L&C broker didn't mention this option (brokers can do product transfers too for most mainstream lenders), you're probably with a direct-only lender like Lloyds, YBS, RBS, etc. Who's the lender? 

If your fix is coming to an end in January, you should have got a letter or secure message from your lender outlining your options. If not, just give them a call.

Good luck!

Thank you very much, I had no idea this was an option.  I am with Barclays and L&C arranged the mortgage two years ago. I just read the recent L&C email again and there is no mention of this at all.
I have not had any contact from Barclays yet but will now call them to find out what new product they have.
Really grateful, thank you!

@moozie_2 Barclays certainly does allow brokers to switch products for their clients (assuming it's not in arrears, no additional borrowing or term change, etc), no documentation or signed declarations needed from our end to make the application. I just did one last week for a client of mine whose income is temporarily impacted by covid. The broker does not need to do an affordability assessment or anything, just basic know-your-customer checks.

So it's certainly surprising that the L&C adviser would miss giving that option to you, not to mention bad business. Maybe there's something else in the background? 

When you do get options from Barclays, do consider checking back with your broker to ensure that you are getting the best Barclays product switch rates. Some lenders (not Barclays to my knowledge) give better product transfer rates if you go through a broker when compared to going direct.

Good luck!

moozie_2

K_S said:

@moozie_2 Barclays certainly does allow brokers to switch products for their clients (assuming it's not in arrears, no additional borrowing or term change, etc), no documentation or signed declarations needed from our end to make the application. I just did one last week for a client of mine whose income is temporarily impacted by covid. The broker does not need to do an affordability assessment or anything, just basic know-your-customer checks.

So it's certainly surprising that the L&C adviser would miss giving that option to you, not to mention bad business. Maybe there's something else in the background? 

When you do get options from Barclays, do consider checking back with your broker to ensure that you are getting the best Barclays product switch rates. Some lenders (not Barclays to my knowledge) give better product transfer rates if you go through a broker when compared to going direct.

Good luck!

K_S thank you!  I have now written to L&C to ask why this option was not offered to me as I cannot see a reason for not being able to explore this.  I am in a healthy financial position (albeit not in permanent employment at the moment), have an excellent credit record and not missed a payment on anything since 2013.
I have contacted Barclays and they advised me my deal actually changes on 30th April, not end of January (it is a 27 month agreement not 24 as I thought) and they will be in touch closer to the time.  So the pressure is off just now and who knows, I may secure a perm role by then. Fingers crossed!
Thank you for helping me, you took a weight off my mind.

K_S

@moozie_2 Good to hear that you still have 3+ months. That could be the reason why the broker didn't give that option, some lenders don't allow switching more than 3 months prior to expiry, can't remember what it is for Barclays.