Re-mortgaging during University

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FauxHydon
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Hi,

I have bought a house in April on a two-year fixed mortgage at 2.98%. The deal will end in 2022. Now, I'm starting university in September, first year and by the time the deal ends and they put me on SVR at 4.24%, I'll be in my third year.

Obviously, my income will drop significantly by that time due to part time work, but student finance will balance it out.

Even though I will have no issues paying the mortgage with student finance, renting a room out and part time work, as far as I'm aware, they will only consider my part time job as a source of income.

I'll have about £94.5k left to remortgage when the deal ends.

My question is, if I go with the same company that I'm with now (NatWest), will they do the same checks as they did originally, or would they just offer a new deal?

I took the mortgage out alone. It wouldn't make sense to end my deal of 2.98%, put me on 4.24% and then not letting me re-mortgage because "I couldn't pay the mortgage with my current income" on a lower rate than I was already on.

Any advice would be appreciated!

PS: I really should have taken a 3-5 year fixed..
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Reue
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We we last remortgaged with the same lender they did not require any additional proof of income or employment, the fact we had been paying the mortgage for the past few years was enough for them.

If you did encounter any issue then you should get an independent mortgage advisor. Most work for free and make their money from commissions.
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FauxHydon
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(Original post by Reue)
We we last remortgaged with the same lender they did not require any additional proof of income or employment, the fact we had been paying the mortgage for the past few years was enough for them.

If you did encounter any issue then you should get an independent mortgage advisor. Most work for free and make their money from commissions.
Thank you for your reply! That's what I'm hoping for as well! What information did they ask for? Or did they just offer a new deal that you could go on?
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Reue
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(Original post by FauxHydon)
Thank you for your reply! That's what I'm hoping for as well! What information did they ask for? Or did they just offer a new deal that you could go on?
No information at all, just contacted them and said we wanted to move onto another fixed rate within last month of existing deal ending
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FauxHydon
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(Original post by Reue)
No information at all, just contacted them and said we wanted to move onto another fixed rate within last month of existing deal ending
That's fantastic, thank you! Hopefully they won't ask me either! I wouldn't mind going onto a similar deal as to what I've got now.
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Reality Check
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(Original post by FauxHydon)

I'll have about £94.5k left to remortgage when the deal ends.
What will the LTV be at this point?
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FauxHydon
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(Original post by Reality Check)
What will the LTV be at this point?
Not sure for certain, but should be around between 80-90%.
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Reality Check
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(Original post by FauxHydon)
Not sure for certain, but should be around between 80-90%.
That's good that you've got some equity in it then - you should get a reasonable fix at 80% LTV. You've obviously got the basics sorted, like nice clean credit record for all applicants, paid down any large commercial debts, car finance etc. Personally, I think a lender will do a full affordability assessment along with the credit search, particularly at the moment when credit has tightened.
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FauxHydon
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(Original post by Reality Check)
That's good that you've got some equity in it then - you should get a reasonable fix at 80% LTV. You've obviously got the basics sorted, like nice clean credit record for all applicants, paid down any large commercial debts, car finance etc. Personally, I think a lender will do a full affordability assessment along with the credit search, particularly at the moment when credit has tightened.
Other than the mortgage, I won't have any short/medium/long term debts at all. I would have paid off my car by then and any other loan would be through premium credit for home insurance etc. When I bought the house and moved, my credit score plummeted (clearscore - from 470 to 220), which was expected, and hopefully will fully be back then, but I've never missed a payment on anything. Hopefully, if I don't have any payment issues on the mortgage, they'll go easy on me!
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Reality Check
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(Original post by FauxHydon)
Other than the mortgage, I won't have any short/medium/long term debts at all. I would have paid off my car by then and any other loan would be through premium credit for home insurance etc. When I bought the house and moved, my credit score plummeted (clearscore - from 470 to 220), which was expected, and hopefully will fully be back then, but I've never missed a payment on anything. Hopefully, if I don't have any payment issues on the mortgage, they'll go easy on me!
Fingers crossed for you It sounds like you're in a good position to remortgage and move onto another fix, with either your existing lender or another one. I do still think you need to be prepared for an affordability assessment rather than just having the application waved through, particularly with another lender, but you've got a decent LTV, no unsecured personal lending and presumably a good credit score, so you can't really do much more than that!

It's of course prudent to check your credit file with all three/four CRAs to make sure there are no mistakes or anything which could scupper a mortgage application. I'd do this 14-16 weeks before your current deal expires in case there are any issues which you need to get sorted beforehand.
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jacketpotato
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If you remortgage with the same bank, you'll probably be OK.

If you try to remortgage with a different bank, it sounds like you won't pass affordability checks. Most banks will only lend a mortgage up to 4.5x your income (sometimes a tiny bit above) and I'm not sure they will accept student loans as a mortgageable source of income.
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FauxHydon
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(Original post by Reality Check)
Fingers crossed for you It sounds like you're in a good position to remortgage and move onto another fix, with either your existing lender or another one. I do still think you need to be prepared for an affordability assessment rather than just having the application waved through, particularly with another lender, but you've got a decent LTV, no unsecured personal lending and presumably a good credit score, so you can't really do much more than that!

It's of course prudent to check your credit file with all three/four CRAs to make sure there are no mistakes or anything which could scupper a mortgage application. I'd do this 14-16 weeks before your current deal expires in case there are any issues which you need to get sorted beforehand.
I do check my credit quiet often to make sure everything is right! Thank you very much for all of the information, it's invaluable!

(Original post by jacketpotato)
If you remortgage with the same bank, you'll probably be OK.

If you try to remortgage with a different bank, it sounds like you won't pass affordability checks. Most banks will only lend a mortgage up to 4.5x your income (sometimes a tiny bit above) and I'm not sure they will accept student loans as a mortgageable source of income.
I'm planning on remortgaging with the same back to (hopefully) avoid any scrutiny, but you never know. As long as I get a similar rate, I'm happy. Even if another bank offers lower rates, I think I'll just take the hit and still go with the same bank to be safe! Don't want to inadvertently mess it up by being tempted by lower rates, and I definitely don't want to put anyone else on the mortgage to be accepted.

Very worst case scenario, I'll stay on SVR for a year and re-mortgage after I got a job when I finish uni.

I really appreciate all of the help you all have given, thank you!
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