What to do? Fixed rate deal ending soon

Miss_J

Hey all!

Long time reader but posted so little that I've had to re register.

Hope some on you knowledgeable people can give me a little guidance.

Here's the scenario, been a householder for the last 8 years, never missed a mortgage payment and have about 20 years remaining on the term of my mortgage (have remortgaged a few years back).

Now my current mortgage deal, a 3 year fixed rate is due to expire in June. I chose this option 3 years ago just before I embarked on a full time healhcare degree course, knowing that my income would go down I wanted the security of knowing I could meet the mortgage repayments over the 3 years of the course.

I am due to qualify in August this year (2 months after my current deal runs out) howevre the job situation is dire and it is doubtful I will get a job straight away. I am really concerned about where I stand in getting a new mortgage deal and worried that I will see a sudden hike in payments that I will not be able to meet. I am currently feeling the squeeze on my monthly outgoings due to increased fuel bills and student debt repayment and know I would struggle to meet any increase in mortgage payments.

I have put a little money aside (enough to pay about 4 months worth of mortgage) and if needs be I will get a temporary job to keep the money coming in but where will I stand in relation to being creditworthy enough to get a new deal?

My current mortgage is 61K and my home is valued at 170K, we are hoping to extend the mortgage in a year or 2 when I've got a contract so that we can extend and improve our home.

Is it worthwhile looking into this now or wait and see if there is any change in the market soon>

So many questions, thanks for you patience :T

Trying_to_be_good

You say 'we' - does this mean you have a partner? Do they have a salary? Do you have any salary? I ask particualarly as you mention you're repaying student debt, and if it's Student Loan COmpany debt that only normally kicks in at a certain salary level.

Little_Mama

You don't have to remortgage, you could try calling your current lender and asking for a product switch. As I understand it, well my mortgage company told me this, I just 'buy' the product I want and I won't have to do any more paperwork other than that to change products.

If it's an option available to you then you might want to get yourself onto a suitable product for existing borrowers for a couple of years or so and remortgage when you 'know' what your long term circumstances will be.

Good luck
LM

pollyanna24

This was the same for me. Hopefully you are with a half decent bank and can just change products without having to show any proof of income.

We recently did this for Nationwide.

Miss_J

Thanks all for the advice and apologies, I just realised I posted in the wrong forum, but you've all given good advice.

Just to answer a few questions:

My mortgage is joint with my husband who is also a full time student and also self employed (although does not earn much due to his studies).

I receive a bursary from the NHS which covers my mortgage and basic living costs as well as my childcare fees.

My husband receives LEA funding as well as the income he brings in from his self employment.

We also receive child tax credits and working tax credits which helps to make up our income, hence how I have never had a problem paying the mortgage.

My concern was having to answer questions relating to my financial status, when I changed my mortgage product 3 years ago, I was still in full time employment earning a decent salary and in June when my mortgage offer runs out I will be 2 months away from completeing my degree and my funding will run out in August. So I am not really sure what I should tell them with regard to my income. I will probably be out of a job in my specific speciality for up to 6 months, but intend to work temporarily in order to pay the bills, childcare etc but I am aware this may make me seem more of a risk, despite being able to bring in the same amount of money that I currently bring in with my bursary and extras.

As for the debt, I know that my student loans will have to be paid back once my income reaches the 15K mark, however at the moment I am paying interest on other debts I've acumumlated through the course of my degree studies, this is also manageable too, and I have never defaulted in payment.

I guess mainly my worries are that the mortgage lender will suddenly think I am a bad risk and not give me a good mortgage offer.

Thanks again everyone for your advice.