Remortgage time

FluffySheep · 29 Mar 2018 at 14:06

Hi all

I'm after advice as it looks like I'm going to be moving mortgage company in December and I'm trying to keep on the front foot as I have never moved mortgage company. I'm looking at going from rbs to tesco. 2.59% down to 2.06% fixed for 5 years. Not too bad! Improving ltv helping massively. There might be better deals but I'm just browsing for now. Deals come and go so it's a bit far to have the final product planned now. BoE might hike rates by then!

Questions ahoy!
I currently get electronic payslips. Is it worth changing back to paper or not bother? Lti will be almost exactly x2 and I'm on a salary
I will probably be moving to a 12 month temp contract (same pay, new place) from September. Will it be much of a hurdle?
Do I need a solicitor? I'm not stupid but some guides say get one...
How much difficulty will there likely be if I plan for a change on 4/12/18. Do they get through as planned or is it like sticking jelly to a wall?

Any other advice is more than welcome
FluffySheep

Maundie · 29 Mar 2018 at 14:27

Not sure for every lender but when we moved to Santander we had to go through the whole application process which included all the employment checks, surveys etc.

planty · 29 Mar 2018 at 15:02

Can't offer any advice, but we'll be doing the same this year so interested in the replies

FluffySheep · 29 Mar 2018 at 15:09

planty said:
Can't offer any advice, but we'll be doing the same this year so interested in the replies

When is your deal ending/you starting a new deal? We should keep this going through the year as we hit the issues that *will* come up

Syla5 · 29 Mar 2018 at 16:26

FluffySheep said:
Hi all

I'm after advice as it looks like I'm going to be moving mortgage company in December and I'm trying to keep on the front foot as I have never moved mortgage company. I'm looking at going from rbs to tesco. 2.59% down to 2.06% fixed for 5 years. Not too bad! Improving ltv helping massively. There might be better deals but I'm just browsing for now. Deals come and go so it's a bit far to have the final product planned now. BoE might hike rates by then!

Questions ahoy!
1. I currently get electronic payslips. Is it worth changing back to paper or not bother? Lti will be almost exactly x2 and I'm on a salary
2. I will probably be moving to a 12 month temp contract (same pay, new place) from September. Will it be much of a hurdle?
3. Do I need a solicitor? I'm not stupid but some guides say get one...
4. How much difficulty will there likely be if I plan for a change on 4/12/18. Do they get through as planned or is it like sticking jelly to a wall?

Any other advice is more than welcome
FluffySheep

Currently going through the process as we speak. I have numbered your questions to make it easier to answer, but wanted to cover off something first now.

If your re-mortgage window isn't until December there is absolutely no point looking at rates currently. They change monthly and the earliest you can start looking at a re-mortgage is roughly 90days before your current deal ends as most mortgage offers are only valid for 90 days. So you wouldn't really be able to get the ball rolling until October at the earliest.

Answers to your questions:
1. Electronic vs Paper payslips will make no difference as long as you can access them and provide them in any form to your future lender you should be fine. I personally sent over screen shots of my online payslips which were accepted just fine.

2. If you are changing your job and moving from perm to temp then yes it will likely have an impact on the decision making of any lender. Honestly why would you move to a new place for the same money and no job security? Anyway that's another subject, with many valid answers. I would strongly advise holding out if you can as re-mortgaging can be difficult without changes to income predictability as it is.

3. Yes you do need a solicitor when changing lender, most mortgage providers have a recommended, or internal solicitor's and fees included or cashback offers to help cover the costs of them. Outside of this you can arrange your own convincing solicitor's quite easily.

4. If your old deal expires on the 4th December and you plan a completion date on the 4th December it should go through on the 4th December, baring any outside influences causing delays.

I assume that your current mortgage deal has Early Repayment Charges which is why you are looking to arrange something new for when your current deal ends and not before?

FluffySheep · 29 Mar 2018 at 16:37

Syla5 said:
[snip]

2. If you are changing your job and moving from perm to temp then yes it will likely have an impact on the decision making of any lender. Honestly why would you move to a new place for the same money and no job security? Anyway that's another subject, with many valid answers. I would strongly advise holding out if you can as re-mortgaging can be difficult without changes to income predictability as it is.

4. If your old deal expires on the 4th December and you plan a completion date on the 4th December it should go through on the 4th December, baring any outside influences causing delays.

I assume that your current mortgage deal has Early Repayment Charges which is why you are looking to arrange something new for when your current deal ends and not before?

Loooong story about morning job. Boss has made it untenable in my current job. I assume payslips from 2 employers isn't a major issue.

My deal ends 30/11/2018 but my payment is due 1/12 then it's the weekend so I thought 4/12 would be a good compromise to avoid overlapping payments and the weekend. Anything before 1/12 and there's a 1% charge so not much point moving before then

Thanks

mrbazmondo · 29 Mar 2018 at 17:04

I don't know if things have changed, but it used to be that they wouldn't take temp salary into consideration at all.

planty · 29 Mar 2018 at 17:25

FluffySheep said:
When is your deal ending/you starting a new deal? We should keep this going through the year as we hit the issues that *will* come up

Current deal ends in October so still a long way off also.

Iron-man · 29 Mar 2018 at 18:21

FluffySheep said:
Questions ahoy!
I currently get electronic payslips. Is it worth changing back to paper or not bother? Lti will be almost exactly x2 and I'm on a salary
I will probably be moving to a 12 month temp contract (same pay, new place) from September. Will it be much of a hurdle?
Do I need a solicitor? I'm not stupid but some guides say get one...
How much difficulty will there likely be if I plan for a change on 4/12/18. Do they get through as planned or is it like sticking jelly to a wall?

Any other advice is more than welcome
FluffySheep

1.Electronic payslips are fine and you can also print them out, no issues there.
2.Not sure on temp contract as they normally ask if full time and permanent.
3.If you comfortable without a solicitor then give it go, all about having a good read of what your signing, I did my last change myself and all was fine.
4. I think someone has mentioned above you can start the ball about 3 months before so if you get started when you can you target date should be fine.

Best of luck

Syla5 · 29 Mar 2018 at 22:47

From a risk assessment perspective a temporary job or contracting work is much higher risk then a permanent job with no remaining probation period. It’s as simple as that.

This doesn’t mean you won’t get a new deal, it does however mean you are a higher risk, and that increases the possibility of getting declined. It’s not just as simple as a good LTV any more. The assessment is based on ability to through the term of the mortgage and not just the term of any fixed rate.

Also if your ERC’s are currently only 1% and your mortgage will only be 2x your salary if I am reading your OP correctly, you might want to consider if it might be beneficial to change early and incurr the charge. It might be cheaper in the long run and could quite conceivable be easier to get through the application while still in a permanent job.

Haggisman · 30 Mar 2018 at 12:10

Syla5 said:
Currently going through the process as we speak. I have numbered your questions to make it easier to answer, but wanted to cover off something first now.

If your re-mortgage window isn't until December there is absolutely no point looking at rates currently. They change monthly and the earliest you can start looking at a re-mortgage is roughly 90days before your current deal ends as most mortgage offers are only valid for 90 days. So you wouldn't really be able to get the ball rolling until October at the earliest.

Tesco offers are valid for 6 months. Source: I arranged a mortgage with them last October and all being well will be completing on Wednesday

FluffySheep · 30 Mar 2018 at 15:43

Haggisman said:
Tesco offers are valid for 6 months. Source: I arranged a mortgage with them last October and all being well will be completing on Wednesday

I think I might have the start of a plan: Get it organised over the summer and set the start date for Dec. I'm still full time employed at the date of acceptance and no rules are broken. I'll have no problems passing the affordability checks, etc. and everyone is happy

FluffySheep

Syla5 · 1 Apr 2018 at 14:08

Haggisman said:
Tesco offers are valid for 6 months. Source: I arranged a mortgage with them last October and all being well will be completing on Wednesday

Was it a “decision in principal” or an “offer in principal” that was valid for 6 months?

Haggisman · 1 Apr 2018 at 14:30

Not sure about the decision in principal, as I went through to the offer stage straight away, but the formal offer is valid for 6 months

Hedge · 1 Apr 2018 at 16:00

I just remortgaged with the same bank and we didn't have to do any paperwork checks or anything. Rate still dropped quite a bit too.

Could have maybe got a tiny bit better but around 1.5% was fine by me!