Changes in Circumstances: Remortgaging

Posted on 9 November 2016 by Joyce

Hi, I have a £160k mortgage on a property valued between £215 - £230k. I have managed to recently secure a 2 year fixed rate swap with my existing lender from 4.38% to 2.79%. However I am concerned that I may not be able to remortgage at the end of the term in 2014. Due to redundancy my salary has reduced from 34k by half. Do you have any advise on on best way of remortgaging when the time arises in the event that my income has not risen, and in light of the new mortgage market review rules also coming into effect in the same year. I would be most grateful for any advise on my options do that I can prepare myself for the future. Kind regards, Joyce.

Hi Joyce,

Your situation highlights an issue that we have been aware of for sometime, which is that in these  very uncertain economic times, borrowers (esepcially when going direct to lenders) are still predominantly taking cheaper short term 2 year rates, over longer term deals where the rates are slightly higher, and then ending up as "mortgage prisoners" when their circumstances change for the worse. 

The good news, is that as John Charcol is an Independent, Whole of Market broker we have access not just to the well known large high street lenders, but also those lesser known ones, who still manually underwrite cases, and can therefore judge each application on its merits.

The best advice that I can give to you is to contact us again nearer the expiry date of your current deal, and we can go through your situation at that time and give you a clearer picture of what your options would be.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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