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    • Pete_J75
    • By Pete_J75 9th Mar 18, 4:24 PM
    • 2Posts
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    Pete_J75
    Cutting salary before remortgage
    • #1
    • 9th Mar 18, 4:24 PM
    Cutting salary before remortgage 9th Mar 18 at 4:24 PM
    Hi I have a 3yr fixed term mortgage with Virgin Money due to come to the end of its term in October, however I am planning a drastic career change that involves cutting my hrs at work by half and my salary from 36k to 18k. I will still be able to cover the mortgage on this. However I am considering the risk of doing this when it comes to applying for new mortgage deals either with Virgin or other providers. I would rather go in to the application from a position of strength but i don't know if i can be bothered waiting another 7 months to make my career change.

    Can anyone offer any tips please?
Page 1
    • kingstreet
    • By kingstreet 9th Mar 18, 4:25 PM
    • 33,338 Posts
    • 18,030 Thanks
    kingstreet
    • #2
    • 9th Mar 18, 4:25 PM
    • #2
    • 9th Mar 18, 4:25 PM
    You will have zero remortgage options.

    Best you can hope for are customer retention options from your existing lender. These can often be arranged online without further affordability or status checks.

    Check with lender.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • ACG
    • By ACG 9th Mar 18, 4:25 PM
    • 16,816 Posts
    • 8,771 Thanks
    ACG
    • #3
    • 9th Mar 18, 4:25 PM
    • #3
    • 9th Mar 18, 4:25 PM
    I believe you can switch products with virgin without the need for further underwriting.

    If you want to switch lenders, then you would have to go through underwriting. There is no financial information so it is impossible to say whether or not you would pass affordability based on the lower income.
    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.
    • futurecut
    • By futurecut 10th Mar 18, 4:43 PM
    • 22 Posts
    • 2 Thanks
    futurecut
    • #4
    • 10th Mar 18, 4:43 PM
    • #4
    • 10th Mar 18, 4:43 PM
    I just went through this with virgin wanting to borrow 50k with 150k equity on a 2ooK house with 4 day week salary of 24880.

    Declined.

    I believe as virgin took over northern rock they have tight criteria.

    Now having to pay 800 so wife can get onto deeds for joint application so i'd guess you've no hope.
    • fewcloudy
    • By fewcloudy 11th Mar 18, 5:42 PM
    • 220 Posts
    • 115 Thanks
    fewcloudy
    • #5
    • 11th Mar 18, 5:42 PM
    • #5
    • 11th Mar 18, 5:42 PM
    I just went through this with virgin wanting to borrow 50k with 150k equity on a 2ooK house with 4 day week salary of 24880.

    Declined.

    I believe as virgin took over northern rock they have tight criteria.

    Now having to pay 800 so wife can get onto deeds for joint application so i'd guess you've no hope.
    Originally posted by futurecut
    No hope of what? Depends on the amounts involved if making a new application, and might be perfectly OK if all the OP does is a retention product offer, if they can wait for those 7 months.
    Feb 2008, 20year lifetime tracker with Sprogget and Sylvester, 0.14% + base for 2 years, then 0.99% + base...
    • Pete_J75
    • By Pete_J75 14th Mar 18, 10:53 AM
    • 2 Posts
    • 0 Thanks
    Pete_J75
    • #6
    • 14th Mar 18, 10:53 AM
    • #6
    • 14th Mar 18, 10:53 AM
    Thanks for all your replies. My plan is basically to remortgage in June (the earliest I can do it) and cut my salary in July. If they ask "do you foresee any changes in your circumstances?" i guess i will tell a little white lie. Given that i know i can afford the payments even on the reduced salary, have savings and am living with a partner who is also contributing to living costs, I think any risk is minimal.
    • Thrugelmir
    • By Thrugelmir 14th Mar 18, 12:29 PM
    • 58,442 Posts
    • 51,813 Thanks
    Thrugelmir
    • #7
    • 14th Mar 18, 12:29 PM
    • #7
    • 14th Mar 18, 12:29 PM
    If they ask "do you foresee any changes in your circumstances?" i guess i will tell a little white lie.
    Originally posted by Pete_J75
    Entirely your decision. Akin to speeding. Everyday for somebody matters don't turn out well.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • nicmyles
    • By nicmyles 14th Mar 18, 12:44 PM
    • 104 Posts
    • 133 Thanks
    nicmyles
    • #8
    • 14th Mar 18, 12:44 PM
    • #8
    • 14th Mar 18, 12:44 PM
    Entirely your decision. Akin to speeding. Everyday for somebody matters don't turn out well.
    That's not really a very good analogy, though, is it? Speeding has an impact on people other than yourself. Your mortgage arrangements don't, as long as you meet your obligations.

    There is also no way whatsoever the mortgage company would be able to prove you had planned the career change before the new mortgage deal kicked in. As long as you pay the mortgage on time for the duration of your new fixed rate, they won't know or care until you try to remortgage once again.
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