Preparing For Dreaded Re-Mortgage

B15_Donne

Morning,

Just want some advice. Will give some background to our current financial situation.

Our 2yr fixed mortgage with Halifax 1.28% borrowing £200k over a 28yr term is coming to an end in December 2023. Our house is worth roughly £400k, meaning we are paying £707 a month.

The application was made by me and my wife for our current mortgage. We’re practically debt free, no car finance, credit card will be payed off by March 23 at the latest, no outstanding credit anywhere, top score on Experian, never been refused credit. Very rarely in our overdrafts, joint savings of £11k, saving a minimum £450 per month (joint savings, kids saver and my individual savings).

I earn £32460 as a civil servant, wife if a secondary school teacher earning £35500. Come December 2023, the remaining balance will be roughly £187,000.

We have a rental property with my parents which brings in an additional £300 a month for us as extra income.

To complicate matters we’re expecting our 2nd child in March, but by the time we come to apply for a re-mortgage end of the year, as all providers ask for 3months payslips by then my wife’s pay will be considerably less than what she actually earns monthly. Therefore i’m worried about us being declined a mortgage. Has anyone else been in a similar situation?

Secondly, its frightening if we were to change our mortgage today to a 2yr fixed, the best deals are £300 month more than what we’re currently paying. £1000 a month payments 🤯🤬

My car needs changing and would have to borrow the money to purchase the new car, but looking at the increase on mortgage rates, cost of putting the baby into childcare and general inflation i’ve got a feeling i’ll have to run my car into the ground.

Apologies for the long post, just want to vent my comcerns.

nicmyles

If you're just booking a new rate with your existing provider (and absolutely recognise that may not financially be the best idea), they won't generally do affordability/payslip checks again (or my current provider doesn't, at least). They've already lent you the money!

RelievedSheff

Have you checked what products Halifax are offering you?

Doing a product swap will mean no affordability or credit checks.

mi-key

As others say, I had to sort mine out last Feb. Because I was staying with the same lender I could just pick the product I wanted online and it was all done automatically with no need for credit or income checks.

I think when you stay with them they don't technically pay off the mortgage and start a new one, they keep the same  mortgage and just change the interest rate and payments etc... 

Postik

Unless the saving is huge elsewhere, I would just stay with my existing lender. Saves all the rigmarole of payslips, affordability checks, credit checks, just for them to say no and then you have to start again. With the same lender you'll probably go online and check a box and it's done.  If the saving is huge elsewhere then all the more reason for them to say no - I learnt from bitter experience that often the best deals are restricted to a narrow set of customers