New fixed rate with same lender without affordability calc?

toucangaroo

Hi all,

I heard from a broker that at the end of a fixed rate mortgage term, you have the option of not going onto the Standard Variable Rate, but of getting another fixed rate deal with the same lender *without* affordability calculations. Is this true? 

I'm currently paying a mortgage that while I have no trouble affording it in the real world, banks consider it to be right on the edge of affordability. I'm considering a change to freelance work, and expect a significant reduction in my income, but to still just about be able to make ends meet. But in a year, my fixed rate will come to an end, and with a reduced income I'll no doubt fail affordability criteria that banks set, but I don't want to revert to the standard variable rate obviously.

Thanks

K_S

@toucangaroo With most mainstream lenders, that is indeed correct and called a product-transfer, product-switch or rate-switch. Usually, no income/affordability/credit checks are necessary. It's usually something that can be done full online or a few minutes on the phone.

Just to sound a note of caution, the above might not apply with certain specialist lenders.

toucangaroo

Thanks! My mortgage is with Platform, and a quick google of those terms took me here: www.platform.co.uk/mortgages/existing-mortgage-customers/find-a-better-mortgage-deal/index
so it looks like this should be an option. Thanks again