A mortgage broker is offering me a 2 year fixed deal. I raised the issue that, supposing I became unemployed 2 years from now, could I be stuck on the SVR when the fixed term expires, due to being unable to pass any income test for a new mortgage?
His response was
“No that would not happen as you would simply complete a rate switch application with the current lender. There is no cost for this and its literally done in 7 days [ no income proof, valuation or credit checks required ]. Current lender will send a mixture of rates to you and some will have a fee and some will not. We would be able to advise at the time which rate to go for and it all depends on the borrowing and balance at that particular time.”
Does that mean that I wouldn't need to declare income at all at the end of a 2 year period? If this is the case why do banks even have a SVR - why don't they just move everyone to the next deal?