My girlfriend and I took out a mortgage of £106,00 in January 2005 to buy our first house, which cost £146,000. The mortgage is fixed for five years at 5.64% with Abbey. At the time I was working full time on a salary of £30,000. My girlfriend developed ovarian cancer and passed away in August 2006. Unfortunately, she had already been diagnosed with cancer at the time of signing the mortgage agreement, so she was unable to get any insurance cover. My monthly take home salary of £860 is topped up with £300 of child and working tax credits. I also have a lodger who pays £300 rent a month, and am managing quite well financially. My question is:

Q:What happens when my mortgage finishes in 2010? Will I be able to shop around for a remortgage with other lenders because of my low income (as tax credits and rent money do not count towards my salary) Will I be stuck with whatever Abbey offers me?

A:The fact your mortgage is less than 75% of the value of your home and you have been managing your repayments should work in your favour. But whether you need to remortgage with a different lender depends on what interest rates are like in January 2010.

If your fixed-rate deal ended today, you would go on to an interest rate of 4.24%, which is less than your current fixed rate. You might also be able to arrange a new fixed rate with Abbey, which is lower than what you are paying now. If the revert rate in January 2010 is still lower than your current fixed rate, stick with that and save the difference between what you now pay and the new lower payment.

If interest rates in January 2010 aren’t favourable, it is sensible to move away to a different lender. Given the make-up of your monthly income you could use a fee-free mortgage adviser who will know which lenders will be willing to lend to you. The Guardian mortgage service offers free advice from brokers London & Country.

Q:Do I have to disclose my earnings to them again and risk being offered a disappointing rate?

A: yes, you will need to provide details of your income if you choose to remortgage with a different lender. But the good news is that some lenders do take tax credits into account when assessing applications. New homes in London