Moorron
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| posted on 30/12/10 at 07:39 PM |
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Mortgage advice
Evening lads i need some advice on my mortgage.
My problem is my 5 year fixed ends in march 2011, but i want to enter back into another fixed term to feel secure (most likley with the current
provider) but i am now out of work so cant prove much income other than my partner who earns very little.
If i go and try to enter a 5 year fixed will this work against me? I remember last time i did this i had to give pay slips but i did borrow more to
buy a kitcar and kitchen.
Good news is my mortgage is peanuts (under £55000) on a house worth nearly £130000 so i should get a good rate.
My monthly payments at the mo are £540 including insurances with 10 years left to pay.
Any input welcome.
Sorry about my spelling, im an engineer and only work in numbers.
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afj
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| posted on 30/12/10 at 08:05 PM |
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Check what Interest rate your mortgage goes on to when your deal is up in march
Our deal ended in September so now our interest rate is only 1.5 percent that knocked £150 per month off, I'm all good until the bank of
England put the interest rates up, the plan is when the rates start to creep up I'll get on a 3 or 5 year deal
Eta. My paper work says My interest rate is guaranteed not to be more than 1% above bank of England rate
[Edited on 30/12/10 by afj]
eerrrrrrrrrrrrrrrr
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JoelP
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| posted on 30/12/10 at 08:37 PM |
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quote:
Originally posted by afj
Check what Interest rate your mortgage goes on to when your deal is up in march
Our deal ended in September so now our interest rate is only 1.5 percent that knocked £150 per month off, I'm all good until the bank of
England put the interest rates up, the plan is when the rates start to creep up I'll get on a 3 or 5 year deal
Eta. My paper work says My interest rate is guaranteed not to be more than 1% above bank of England rate
[Edited on 30/12/10 by afj]
i think the fixed rates will rise fast as soon as the BoE raises the base rate! You probably want to keep an eye on things and get it fixed before the
papers come out with their doom and gloom.
Moorron, im not sure but its likely that your current lender will treat it as a new application and work out your combined income afresh. I'd
call them and see what can be arranged. It does, i suppose, depend on exactly how little your missus earns; could you secure a mortgage off her wage
alone? Is it currently 3x or 5x a single wage? At least you're in a great position mortgagewise having so much equity. If you were working too
id suggest trying to bang it out in 5 years, might only be £1000 a month to do that.
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Moorron
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| posted on 30/12/10 at 11:35 PM |
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cheers,
my fixed is at 5.01 and then drops to 4.24 but even tho its saving me a few £'s a month i would rather have the security of a fixed.
Last time we went back (so 5 years into a 25 year mortgage) we reduced the repayments 5 years and so paid more a month but still £540 isnt that much
is it? We also borrowed more but get this, we borrowed £20k more but saved £15k on interest by cutting 5 years off the repayments!
I was going to do it this time, but was made redundant so would have had it paid off in a total of 15 years and mortgage free at 37 but it doesnt look
like it now. 
My missus wont meet our debt of £52k ish on her wage at X5! so im going to have to see what they say.
If they wont do it, can they remove me from the std rate i drop onto and demand the outstanding balance?
cheers
Sorry about my spelling, im an engineer and only work in numbers.
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JoelP
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| posted on 30/12/10 at 11:44 PM |
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Myself, i would call and see about getting a new deal, and not mention redundancy. If they say they want payslips again, then id leave it a few days
and then tell them you've changed your mind. Not worth the risk telling them. Basically, if they arent bothered they wont ask, so if they do ask
for them, it can only be a bad thing if you disappoint them! I dont think they would terminate your current deal but it isnt worth giving them the
option.
If it goes wrong with them then you would have to wait til you get a job id guess before applying to other companies.
Remember though, non of us (i think) are financial advisers!
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Moorron
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| posted on 30/12/10 at 11:57 PM |
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yeh i thought that way might be the best. I will see what happens then.
fingers crossed
Sorry about my spelling, im an engineer and only work in numbers.
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matt_gsxr
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| posted on 31/12/10 at 12:07 AM |
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When I have updated mortgages, that is moving from one fixed to another with the same provider, they haven't asked for salary details
(Nationwide).
Rule may have changed, as since mine dropped from fixed onto the base rate +2.5% I have just enjoyed the savings.
Good luck with getting a new job, redundancy is a pain, but sometimes a blessing in disguise.
Matt
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hughpinder
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| posted on 31/12/10 at 11:25 AM |
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When I was with the Woolwich and the 5 year fixed rate ended , I just phoned up to ask if I could go onto a new fixed rate deal, and it was done - no
paperwork or proof of income required (but I didn't borrow any more or change the length of the mortgage etc)
Regards
Hugh
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