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    • laura_louise
    • By laura_louise 2nd Dec 19, 10:08 PM
    • 60Posts
    • 51Thanks
    laura_louise
    Fix ending, low income, help? Coventry BS
    • #1
    • 2nd Dec 19, 10:08 PM
    Fix ending, low income, help? Coventry BS 2nd Dec 19 at 10:08 PM
    My mortgage is currently with Coventry (£96k mortgage on a property worth £130k).

    My 5 year fix is coming to an end in a years time and i'm freaking out about planning for it because if i'm forced onto SVR it'll massively increase my mortgage. Currently paying £419 a month.

    My question is:

    Does anyone know what would be asked if I attempt to do a product transfer next year? They offer product transfer to existing customers and if i can get it, my mortgage could drop a little.

    I'm scared they'll do affordability checks or something that i'm going to fail . I'll be able to request product transfer in August next year and looking ahead to see what i can possibly do to avoid a refusal.

    Financial situation/ worries:

    Perfect credit score. No missed payments, no late payments, no nothing, i'm basically squeaky clean.

    Massive reduction in income. When i got the mortgage it was on an income of £40k. I'm now only earning £14k.

    I have £7k of credit card debt which is currently all on 0% interest spread across 3 cards. When i took out the mortgage I had no debt.


    ---

    I'm a single mom and self employed which i don't think helps my case.

    I have around £3k in spare cash I could access to pay down almost half of that credit card debt if i needed to. (The £7k of debt is currently costing me around £100 a month to service on 0% cards). But i don't think it would make much difference on such a low income anyway, i'm clearly going to fail miserably if they do an affordability check.

    Financially, things are tight but i make it work and we manage. Some months i earn slightly more than others. A rise to SVR would add a fair bit onto my mortgage and put me in danger

    Any advice for me? What questions did you get asked on a product transfer? What evidence do you provide? ANyone renewed their mortgage with Coventry and can share an experience?
Page 1
    • BookmobileBadGirl
    • By BookmobileBadGirl 2nd Dec 19, 10:14 PM
    • 180 Posts
    • 249 Thanks
    BookmobileBadGirl
    • #2
    • 2nd Dec 19, 10:14 PM
    • #2
    • 2nd Dec 19, 10:14 PM
    If Coventry BS is anything like my bank, you can just renew with them near the end of the fix and they do not look at your financials.
    Currently (02/04/2019) £62,265 Aim (05/11/2021) £50,000

    Mortgage - Shared Ownership 25% £75,300 - MF December 2051 December 2045
    • Thrugelmir
    • By Thrugelmir 2nd Dec 19, 10:29 PM
    • 65,939 Posts
    • 58,048 Thanks
    Thrugelmir
    • #3
    • 2nd Dec 19, 10:29 PM
    • #3
    • 2nd Dec 19, 10:29 PM
    Seems as if a switch to a new mortgage product require a telephone conversation. No online facility. Therefore will be on an advised basis.

    Any possibility of increasing your income during the next year?
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
    • laura_louise
    • By laura_louise 2nd Dec 19, 10:47 PM
    • 60 Posts
    • 51 Thanks
    laura_louise
    • #4
    • 2nd Dec 19, 10:47 PM
    • #4
    • 2nd Dec 19, 10:47 PM
    Yeah, it's all in a phone conversation , their website says it takes "45 minutes", which i'm guessing increases likelihood of financial questioning .

    I don't think there's any chance of increasing my income by much, no. I could potentially bump it up a little over the summer, an extra 25%, but nothing that'd pass an affordability check... worth a shot maybe anyway.

    --

    Anyone here been through the process with Coventry and can tell me a bit more about what they ask in those 45 minutes?
    • kev2009
    • By kev2009 2nd Dec 19, 11:24 PM
    • 507 Posts
    • 627 Thanks
    kev2009
    • #5
    • 2nd Dec 19, 11:24 PM
    • #5
    • 2nd Dec 19, 11:24 PM
    Hi,

    Sorry to hear, must be tough. I'm with a different bank and my 5 year fixed term is up next year but I believe nearer the time they will advise of my options and I can choose online what one I want or obviously I can look elsewhere.

    Current plan is to fix again for 5 years with the same bank as will be easier. Previously a mortgage broker sorted out my mortgage so I don't know exactly what they did and didn't ask last time to even give you a comparison, i obviously just provided proof of income etc and that as it, next thing I heard was they had given me the mortgage BUT i had to have it over 30 years, not 25 years as planned as i didn't fit but whilst was a bit annoying, it did mean the "bonus" if you will was a lower monthly payment required which ironically worked out to around the figure I had in mind I wanted to pay so it all worked out. Like you, I don't want to go rocking the boat mortgage wise so hence plan to remain with same bank i'm with for ease, plus I find most banks are around the similar price.

    Hope you mange to get the mortgage sorted out.

    Kev
    • ACG
    • By ACG 3rd Dec 19, 9:55 AM
    • 19,715 Posts
    • 11,252 Thanks
    ACG
    • #6
    • 3rd Dec 19, 9:55 AM
    • #6
    • 3rd Dec 19, 9:55 AM
    I do not know what it is like if you go direct, but if you look on their intermediary page it actually says "no underwriting"
    https://www.coventrybuildingsociety.co.uk/intermediaries/existingborrowers/product-transfers

    I cant imagine they would have one rule for direct and another through a broker. I think you will be fine, but if in doubt, speak to a broker. A broker will get about £250 for what will be maybe 2-3 hours work. I cant imagine they would want to charge or certainly nothing more than maybe £100 tops.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Stenwold
    • By Stenwold 4th Dec 19, 9:53 AM
    • 16 Posts
    • 13 Thanks
    Stenwold
    • #7
    • 4th Dec 19, 9:53 AM
    • #7
    • 4th Dec 19, 9:53 AM
    You'll need to speak to a Mortgage Advisor, however as you're already a customer of theirs you won't need to pass affordability.


    You'll only need to pass affordability if you're looking to borrow additional funds or change the term of your mortgage.


    My advice is to be open and honest with the Mortgage Advisor, explain your circumstance and that your priority is lower monthly payments, and they'll advise you accordingly.


    Good luck with it all
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