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    Remortgage with same lender - affordability check needed?

    I currently have a mortage with Nationwide which i am now in a position to change. I have seen a better deal with the same lender. The fact that everything else will remain the same apart from a lower monthly cost, will they still need to do another affordability check??

    21 Comments

    Whilst I don't know definitively, it would make sense for them to do it and remiss of them not to.

    Yes they will want to know if any circumstances have changed, ie you may now have car lease you didnt have before, for example.

    Original Poster

    Makes sense. I thought that the fact i am already comfortably paying my mortgage at this rate would give them confidence i would be able to carry on doing so at a lower rate but i agree, circumstances do change.

    Yes they will, so if your salary has dropped you may struggle to get the same deal.

    Yes. Things are even stricter than a couple of years ago - although with interest rates rock bottom still, you might find the variable rate is pretty good.

    Banned

    Yep

    Actually been through the same myself with Woolwich (Barclays) and they didn't check at all. I signed a form saying that I'm taking this new mortgage without advice and that was it. Really straightforward and did it all online mostly.

    I did the same with Nationwide, yes they still do an affordability check. Wages have increased slightly but amount we can borrow as gone down!!! We have no hp or anything. They have lowered the amount we can borrow, this was before I done an affordability check.

    Mortgage adviser here, it's called a product transfer and unless you want to change the term i.e. reduce the term you should not need an affordability check.

    We just renewed with Halifax. Did it all online in less than 2 minutes (after shopping around ofcourse!). No checks at all.

    As berriman1 said above, they'll not do an affordability check unless you want to reduce the term. If this is what you're looking to do and you want to avoid the affordability check, look at the over-payments option instead. I was recently able to take out a 5 year fixed @ 2.09% with NO FEES, and rather than reduce the term, the scope was there to just change my contracted monthly payment up to what it needed to be to clear the mortgage in 5 years, even though we officially have 13 years left to run. On top of this, they were offering £250 cashback on each mortgage account that we renewed with them, in my case this was 3 accounts (£750 cashback) , which is basically half of the interest they would have charged over the next 5 years. Happy days.

    I'm with Nationwide and have changed the rate when my fixed rate came to an end. You can do it online if you also bank with Nationwide and takes all of 2 mins and no they didnt go through any affordability checks to do this.

    if you are increasing your borrowing then yes they will do.

    That's handy to know, I assumed they would always recheck when transferring to a new product.

    I was borderline with my lending and have (out of choice), reduced my work hours and earnings slightly since. Despite being very comfortable with my payments I have the feeling the loan amount would fall short if another affordability calculation was performed.

    Something else to consider as well, is that if you go the overpayment route rather than officially reducing the term (if you're considering doing this), it is possible to run up overpayments significant enough that you can stop paying for a while if you run into unforeseen financial trouble, and use the overpayments already made as a kind of reserve. If you're simply changing to a new product, as Paul says, you can do it online in a couple of minutes, if you want to change the contracted monthly payments, you'll need to speak to them, but you could do this after you've transferred to a new product if you wish, or you can speak to them and do it all over the phone. 0800 302011 I believe is the tel. no. to use.

    No they won't do another affordability check

    cliosport65

    No they won't do another affordability check



    ​If the OPs circumstances have changed, they may well do another.

    Original Poster

    Called them yesterday and they confirmed that a new affordability check is only needed if you want to change the term or borrow amount.

    I'm with the Principality, current 2 yr fix at 1.9% comes to an end on 31/3/17. I have just obtained a new 2yr fixed with the Principality at 1.65% with no fees, starting when my existing fixed rate ends. I did all this online, confirmation received by email and letter. Took 10 mins on line and no they didnt go through any affordability checks. Such a good deal, and give no hassle I did not even shop around for cheaper rates elsewhere.

    Nationwide do a similar deal for two years for existing customers at 1.59% with no fees. For me though I wanted the 5 year fix, as I think interest rates are only going to go up from here on in. I may be wrong, but @ 2.09% for 5 years (with no fees), the extra I may have saved is minimal, especially as I also got £750 cashback from NW for renewing my three mortgage accounts
    The deal I took @ 2.09% is even better now at 1.99% (still with no fees).

    The deal you found is very good as well though.

    Edited by: "a_user" 19th Jan

    berriman1

    Mortgage adviser here, it's called a product transfer and unless you want … Mortgage adviser here, it's called a product transfer and unless you want to change the term i.e. reduce the term you should not need an affordability check.


    Just a question, staying with the same lender fixing in for another 2 years will they check your credit scoring ?

    d_seng

    Hi there, I am in a similar predicament. I have a joint mortgage with my … Hi there, I am in a similar predicament. I have a joint mortgage with my wife with Post Office/Bank of Ireland. Very recently she got made redundant, and a few applications for a decision in principle with a few different lenders has shown that I won't be able to afford the amount that I need to remortgage, especially given that our daughter goes to a private school.The BoI website clearly says "Whichever route you choose to apply by, we may check that you and your property meet our current lending criteria. We may also need to undertake an affordability check".Has anybody had any experience with them?



    would it not be best to wait until your wife gets a new job before remortgaging?
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