We had our mortgage on a 3 year term, it is now up for renewal but as I am out of work they have just moved us onto a tracker rate. We tried to get changed to an interest only mortgage like my wifes sister who is saving herself £250 per month. They couldn`t offer us a decent saving to make it worthwhile. My question is, the mortgage advisor says we cant change our mortgage to another company as I`m out of work, but I`m going to university next year so probably wont be working for about 5 years. Does this mean we are left high and dry on this tracker mortgage rate? We really could do with the money at the minute and if we had got something like my wifes sisters we would be laughing. Any help greatly appreciated as we`re struggling financially at the min.

 

First off at the moment changing to interest only isn't going to make any differenceas has been pointed out to you already.
I would point out just because your wifes sister saved £250 by going interest only doesn't mean everyone will.

Secondly, no you're not going to be able to change as chances are your income will no longer suffice for you to change.


If I were you I would fix your deal again sooner rather than later as when interest rates go back up you will be screwed. While you're at it changing to interest only will fix your payments at a similar level to now as if I have read correctly the change to interest only offers you no savings.

J

 

Thanks, think I`ll go up on monday and get back into a fixed term for the time being until I finish uni. Thanks very much.

 

As said, get locked into another deal with them but maybe for 5 years if you at uni so keep you secure and know where you stand.

Ok, so in 2,3 years you may be able to get a better deal, but maybe not, if you know what your paying and have everything secure and inplace you know where you stand imo.

 

self cert? Tbh i dont know a lot but our lass is an advisor so i'll ask her in the morning mate

 

Thanks for all the help, any info is greatly appreciated. Think we`ll be getting locked in for hopefully the 5 year term. We`ll see on monday.

 

easier to get a different rate with the same provider than to have to set up a whole new raft of paperwork to send to prospective new mortgage peeps

had the same problem with mine as my brother lives in aus but as his names on the paperwork they wanted him to have to apply for an oversea's mortgage, which was another 7% hgiher than the one were were on

 

I should think you are going to really struggle unless you have a massive percentage of equity?

How much is your mortgage for and how much is the house currently worth, and what total income do you have to your household at this moment in time?

(express it in percentages if you dont want to publish your finances!)

 

House is worth about 100grand, paid 80grand and household income is <18,000 as I`m not working now. So best advice is take the best offer the current company is offering? This recession has hit us really hard, but going to university will see us right in the long term so it has to be done.

 

how much have you paid against the purchase price?

 

how the hell do you get a 18k income with no job,,, i need to do some research !

 

his wife? Or he might have 27 kids

 

Sort of a simalar situation to me. had my own business and to get our house i had to self cert so but down 11k. just before recession hit around 2 years ago roughly. now we went on too a tracker and in the recession we saved around 280 per month on the tracker rate coming down etc.

now the 2 years are up around now as we were tied in for 2 years in that deal.

They have put us on another rate but its only £23 more per month, now I stopped working for my self and have a full time job now but as ive just started will i need to be in for a certain amount of time/wage slips to apply for another "better" mortgage???

sorry to hijack but any help appreciated. as im just sticking with them at the moment

 

Well you have a 20% deposit and its under 5 times you annual income, so you might get lucky, but in the current climate I doubt you will better the best offer from your existing company.

Phone round a few financial advisers and see what they can do, worth investing a bit of time in even if nothing comes of it, its worth a go!

 

IME different companies vary on their criteria for how long you have to have been earning before they will count it, a years certainly will get you access to pretty much all lenders though, but if its a permenant job its often quicker, for things like IT contracting though, hardly anyone would lend to me before I had a years accounts when I tried, so it depends a bit on what sort of job it is.

 

I`ll try and see today, going up to talk to a few advisors and we`ll see what happens. We`ve already paid just over 6 grand off the mortgage and the household income is <18,000 cause my wife works.