Fixed Term Contract (not likely to be renewed) and impact on mortgages

alba86

Some background - I bought a flat around 5 years ago before I was married, with a fixed rate for 5 years (24 year term). Those 5 years are up in December 2021 and I'd like to remortgage/switch deal with current lender, and perhaps move homearound 2 years maximum after that. My income has gone up about 25-30% gross in that time. By the time that initial term ends, I expect to be just below 75% loan-to-value if using the value from 5 years ago.

My wife graduated from a PhD last year and is on a fixed-term contract which ends in July 2022 (18 months long), earning gross about half what I do. She is University non-academic staff, but this is a position that is paid for from a fellowship scheme and is almost certainly not being renewed (they appoint a new person each time). Prior to this she had a shorter US-based fellowship (3 months) and concurrently did some teaching (quite low pay) for a semester at a local University.

In either the moving or remortgaging scenario, her income will have an effect on the deal offered, so there are many things here but my specific questions which I'm looking for guidance on (my Googling skills have not turned up much):

1. When remortgaging, in the expectation her income will affect the deals offered (namely the rate), what sort of impact would her fixed-term contract have, rather than being a permanent employee?
2. What impact would it have on the maximum amount we could borrow if moving home? I've been working on the basis of a rough 3-4x salary, but I have no idea how that differs for limited term employment. If her income was to be counted in any way, it could make quite a big difference.
3. If we move home after her contract is up, what impact does her having zero income have on the amount we can borrow?

dimbo61

If your signing up to a new deal with your existing lender Most lenders allow you to do this completely online.
No credit checks or affordability checks.
If you know what you want and are not borrowing more money and extending or reducing the term you can do this without Advice !
So maybe a 2 year fix would suit your needs or a tracker deal.
Check ERC,s 

alba86

dimbo61 said:

If your signing up to a new deal with your existing lender Most lenders allow you to do this completely online.
No credit checks or affordability checks.
If you know what you want and are not borrowing more money and extending or reducing the term you can do this without Advice !
So maybe a 2 year fix would suit your needs or a tracker deal.
Check ERC,s 

I did go through the process of deal switching online, but for some reason it would not let me complete it. Not sure why (the examples they gave for not being able to were not the case).

I haven't ruled out remortgaging with another provider, just unlikely.

In some ways, I'd quite *like* them to actually do affordability checks because my income has gone up substantially since I took the existing mortgage out.

Thrugelmir

alba86 said:

dimbo61 said:

If your signing up to a new deal with your existing lender Most lenders allow you to do this completely online.
No credit checks or affordability checks.
If you know what you want and are not borrowing more money and extending or reducing the term you can do this without Advice !
So maybe a 2 year fix would suit your needs or a tracker deal.
Check ERC,s 

I did go through the process of deal switching online, but for some reason it would not let me complete it. Not sure why (the examples they gave for not being able to were not the case).

Too early , if your existing product doesn't end until December. 

davilown

You’d be better off posting this on the mortgage board - lots of brokers on there who will be able to give you some good guidance.

On a separate note, why doesn’t your wife get a job short term to show income for any mortgage application?