Switching Mortgage Provider

Bawnmore

Here's something I can't find much information on that someone here might know something about. We had mortgage approval from our bank for the last year or so (renewed once at some point between then and now).

I had the opportunity to move to a better paying position, but it was a contract position rather full time. We spoke with our bank and a number of other banks to see where we'd stand with the contractor scenario, and it's obviously not preferable. After a bit of back and forth with our own bank and some letters from the new employer, the underwriter has agreed that the because the role is so similar, they're happy to proceed with the mortgage. Our own bank are now really our only option for a mortgage, as a contractor in a new position isn't really a good risk for banks that don't know us I'm assuming. That's fine and we're delighted to have it.

Here's the question - the interest rate we've been offered is 3.6% fixed for 2 years - does this mean that if there were a better rate available to us with another bank after 2 years, that we would be free to move?

hanaimai

Bawnmore wrote: »

Here's the question - the interest rate we've been offered is 3.6% fixed for 2 years - does this mean that if there were a better rate available to us with another bank after 2 years, that we would be free to move?

Yes, so long as you meet the new banks affordability criteria etc. It's possible they could have the same issues with your position as they have now, but given that you'll have been in it for some time (or your circumstances could have changed by then) they might not.

Basically, when you switch, your application is essentially treated as a new application and all the relevant rules and criteria (except for the LTV/LTI rules as switchers are exempt from these) apply.

Bawnmore

Perfect - thanks.