Affordability calculations and non-earned income

nsmum

Sorry if this has been asked before.

I have a 5-year fix mortgage ending in December 2024 with Natwest. At the time of re-mortgaging, I will owe £215,000 and have a loan-to-value of around 50%. I am a solo owner (single parent household). At the time of re-mortgage i will have 24 years left on it.

At the moment, my salary is in the range of 54k. However, I am seriously considering reducing my work hours, due to home life considerations. This would reduce my salary to around 42K.

I will also receive additional income (disability living allowance, child benefit, adoption allowance) of around £900 per month (at least until 2030), and I am confident I can pay my bills if I reduce my work hours.

However, I also know that the additional income is likely to not be included in affordability checks, and on a salary of £45K I may get rejected or find myself on a SVR.

My question is - when I come to renew my fixed rate, will I still be able to get a competitive rate on a reduced salary (even if I have to stay with Natwest with an OK-ish rate).

I don't want to reduce my hours and then find I am stuck on an SVR for ever more...

TIA

ACG

Assuming you are with a high street lender, most will offer you retention deals without any further underwriting. 
Theoreitcally if your income was zero, they would still allow you to switch. 

Most lenders will take unearned income to account, although most will only use a portion of it - maybe 50%. They may only take some forms of unearned income so worth checking.