Need to inform lender of change of circumstances?

purplepatch

Since we took out our mortgage 3 years ago on a discounted rate, our circumstances have changed in that our income has halved as I no longer work. At the moment our mortgage equates to just over 3 times husband's earnings.

First question is should we have told the lender about the change in our circumstances? We didn't.

Reason I ask is that we are considering moving and the properties we are interested in would probably require another 30k ish. Our mortgage is only a third of the value of our house, and we are tied in on a discount rate until next July.

Just wondering how it works if we wanted to borrow some more before next year.

Was going to phone the lender to see what our options are, but was concerned that if I said that I'm no longer earning that it might affect our current mortgage.

Anyone?

cattie

Don't worry, there is no need to inform lenders if your income drops.

If you are looking for a bigger mortgage when you move, then it will be considered on the basis of what income your husband has.

You mentioned you currently have a discounted mortgage & if you were likely to be moving before the discount ends, then be sure you will not be charged any penalties for early repayment.

purplepatch

Thanks Cattie.

Would moving house before end of discount period but leaving mortgage with existing lender (possibly adding to it) count as early repayment? Thought most mortgages were portable?

Sorry to be totally ignorant!

herbiesjp

You need to give the lender a call to find out if it is indeed portable or not