23 May 2015

A question about : New product,same lender whilst on dmp?

Hi all

Just wondering, I have been on a DMP just under a year and my mortgage deal is ending.

We are with halifax, on a 6.29% rate. I understand if we do nothing, we will automatically go on to their SVR which is 3.99%

Halifax have a much cheaper deal than the SVR, can I switch to this or will they run credit checks and refuse? It is the same lender and we are not borrowing any more?

We have never missed a mortgage payment or been late on one and been with halifax since we first ever got a mortgage in 2009.

Also, if I apply and they run a credit check - might they then withdraw the mortgage altogether?

edit to add - total mortgage is 105k, house was 118k when bought, probably worth about 125k now. The new deal would be Ј200 cheaper a month so definitely affordable.

mortgage is solely in husband's name. DMP is joint, most of debt is hubby's but some is mine. Debt is approx 40k.

Best answers:

  • the cheaper rates are more often than not only for those with super high credit ratings and high icome any way so would stay as you and go onto the svr and dont rock the boat , 3.99% is still a very good rate
  • they cant "withdraw the mortgage" worst case you go on to the SVR
  • We're with Santander & were on SVR. I noticed they had a good 3 year fixed so applied to transfer over to it online & they didn't even credit check (have checked all 3 reports since). They just sent us some paperwork to sign & then sent another letter once it was agreed. We weren't even asked for any financial information.
    If they do go through the whole process of credit checks etc & you fail, they'll most likely just put you on the SVR.