Urgent Help Mortgage Charter Advice!!

07760

Hi,

I'm asking for some advice please.
I got my svr mortgage this year. My payments have gone to twice too £900 a month.

I asked my building society about the option to extend my mortgage term to reduce monthly payments through the protecton Charter.

They have replied that given my age 46, my mortgage will extend beyond retirement age 70 so they are required to do a financial assessment.

They have asked for my last 3 bank statements and payslips, also evidence of my pension.

I've been asked to sign a declaration and Contract Variation Request.

It refers to asking me how much monthly mortgage payment I can afford to pay each month?

It also refers to declaration re: execution only sale?, and that I will not benefit from the protection of the FCA rules on assessing suitability and I should be aware of the consequences of this...etc...?

The Declaration also refers to Validation of information provided, checking financial commitments, and carrying out a search with a credit reference agency?

My understanding re: Governments Mortgage  Charter customer protections and agreement between FCA, banks and government is:

that there would be no new affordability check, or credit check affecting my score?...

Am I right in questioning this?

MSE_Kit

Hi there,

When it comes to the Mortgage Charter, the 'no affordability check' rule only applies where you're not extending your mortgage term into (or further into) retirement.

Therefore, it is most likely that your term extension will be subject to an affordability check as it won't actually fall under Mortgage Charter help - rather, it'll fall under general mortgage support.

In terms of any credit impact, as extending your mortgage term will most likely be a contract variation, there shouldn't be any adverse impact on your credit file (unless you fail to meet your new repayments once your term has been extended).

Does this help?

Kit

RelievedSheff

Is there any reason you have not remortgaged to another deal rather than stay on the SVR?

07760

MSE_Kit said:

Hi there,

When it comes to the Mortgage Charter, the 'no affordability check' rule only applies where you're not extending your mortgage term into (or further into) retirement.

Therefore, it is most likely that your term extension will be subject to an affordability check as it won't actually fall under Mortgage Charter help - rather, it'll fall under general mortgage support.

In terms of any credit impact, as extending your mortgage term will most likely be a contract variation, there shouldn't be any adverse impact on your credit file (unless you fail to meet your new repayments once your term has been extended).

Does this help?

Kit

Yes thanks

07760

RelievedSheff said:

Is there any reason you have not remortgaged to another deal rather than stay on the SVR?

Given my mortgage only started this year. I wasn't aware of remortgaging being an option?? I think I have to stay on this svr rate for 2 years.

CSI_Yorkshire

07760 said:

RelievedSheff said:

Is there any reason you have not remortgaged to another deal rather than stay on the SVR?

Given my mortgage only started this year. I wasn't aware of remortgaging being an option?? I think I have to stay on this svr rate for 2 years.

You don't normally ever "have to stay on the svr".

MWT

07760 said:

RelievedSheff said:

Is there any reason you have not remortgaged to another deal rather than stay on the SVR?

Given my mortgage only started this year. I wasn't aware of remortgaging being an option?? I think I have to stay on this svr rate for 2 years.

It isn't even considered to be a 'remortgage' if you are just taking a fixed rate product from your current lender.

The question right now though would be what rates are on offer from your lender and does it make sense to lock in at that rate?

07760

MWT said:

07760 said:

RelievedSheff said:

Is there any reason you have not remortgaged to another deal rather than stay on the SVR?

Given my mortgage only started this year. I wasn't aware of remortgaging being an option?? I think I have to stay on this svr rate for 2 years.

It isn't even considered to be a 'remortgage' if you are just taking a fixed rate product from your current lender.

The question right now though would be what rates are on offer from your lender and does it make sense to lock in at that rate?

Does that mean if my building society agree to extending my mortgage post pension age and this doesn't fall under the 'mortgage charter,' and it's also not a 'remortgage', I guess I am I just asking what other rates are on offer to bring my payments down from £863 a month?

RelievedSheff

07760 said:

MWT said:

07760 said:

RelievedSheff said:

Is there any reason you have not remortgaged to another deal rather than stay on the SVR?

Given my mortgage only started this year. I wasn't aware of remortgaging being an option?? I think I have to stay on this svr rate for 2 years.

It isn't even considered to be a 'remortgage' if you are just taking a fixed rate product from your current lender.

The question right now though would be what rates are on offer from your lender and does it make sense to lock in at that rate?

Does that mean if my building society agree to extending my mortgage post pension age and this doesn't fall under the 'mortgage charter,' and it's also not a 'remortgage', I guess I am I just asking what other rates are on offer to bring my payments down from £863 a month?

First of all find out what product transfer rates your current lender can offer you.

Do not mention the "mortgage charter" this should always be a last resort. It will cost you a lot more in the long run in interest payments if you extend your mortgage term. Again this should be a choice of last resort.

Once you have established what your current lender can offer you then find out what rates other lenders can offer you as a comparison.