Hi Ya - Could some Mortgage Advisors and Experts assist? Thanks

Oddgy

HI Everyone. Well, i was just looking for some advice really. Our 2 year fixed rate ends 1st week of December, and we are currently with C&G on a 5.09% interest Rate.

Now i know that it will be going sky high soon, so it is important really to see if i can get another fixed rate deal. Two reasons, as i dont want to be paying over the odds, but also, we are expecting our first child in November, and of course my Fiancee wont no longer be working so will only have my wages come in.

Can i ask, will this majorly effect the mortgage process as before when we applied, we did have 2 wages coming in, and now when i;ll apply, we will only have 1 wages plus the statutory maternity pay wages.

This concerns me as i wonder if no one will touch us now and in fact we will have to be forced to stay with C&G at the severe increased SVR - well i know i couldnt afford it full stop.

I currently Pay £700 a month, albeit i think we overpay by £70 a month, so i know i could continue to afford this amount.

By December our Mortgage should be £110,000 and our house is valued at £155,000.

Any advise would be so appreciated at this worrying time. (Baby on the way and all...)

Ian_Griffiths_Halifax

hi Oddgy. What do you earn and do you expect your partner to return to work? If so, after how long?

ross1979

Hiya,

at your loan to value the best fixed rate deals are going to be in the late 5%s. If I were you I'd get the application in before there is any talk of your Mrs giving up work. It'll mean you have more choices.

Oddgy

Uhm....My earnings are 23000, my partners 19000. However there is another slight issue.

She took voluntary redundency, after 12 years of service, received a small statutory redudency payment, was also paid her 11 weeks notice, and left work end of July. So has received in advance her pay up until Beginning of October. (the baby is due first week of October).
Her employer (ex employer) has also just commenced her maternity pay..so she still is receiving money from her employer. 6 weeks at 90% before it goes down to the statutory of £116 per week.

Ive put a spanner in the works havent i. She only took Voluntary because the company treated her like pants and she could effectively have a few months off with pay while resting and preparing for the birth. Plus she had no intention of wanting to return to that job.

But at the time, we made the decision together, the thought of remortgaging or causing us issues when we came to remortgage due to her being out of work, didnt enter my head, as she was gonna be on Maternity Leave by the time the renewal was up in anycase. Oopz. Now im worried.

Tiddler_2

First point of contact should always be your existing mortgage company to see what deals (if any) they will offer you.

This then gives you a starting point, for a broker to try and beat.
The added benefit of staying with C&G is that they will not have to do any checks on income etc..

Oddgy

Hi Again Guys - You are sure all very quick...nice one. :-) Thanks.
I have booked an appointment to see C&G on Friday, however i have read on here that they wont see people until 4 weeks before the deal is due to expire? So i assume they dont realise our deal ends in December so we may get turned away on Friday.
I have also looked at their website with their deals, and some of their product fees are astronimical. £1995?? Where on earth do they pick these figures from....??!!

Toughluck

If you re-mortgaged you would not be able to prove that income so you may have issues. You will not get the mortgage on your salary alone.

You can take another deal of C&G but they will tell you to call back mid November. Stay with them for a few years and make sure she goes back to work so that you "may" be able to change lenders at a later stage.

Ian_Griffiths_Halifax

There is a slight possibility that you could get the mortgage with a lender who uses an Affordability Calculator rather than Income Multiples.

Alternatively, could you use any of the redundancy package to reduce the mortgage to the level they would lend?

Oddgy

Not really, as it was only statutory, it was only just over 2500. 12 years service eh. Pants.

Oddgy

Hi Ya.
Just a follow up post, i did go to C&G today. I rang them this week, told them when my Morgage is up, and i wanted to discuss new products etc. They told me to come in today at 2pm. So we did - only for them to tell us we are too early. (Why didnt they tell me this on the fone!). So they couldnt help, and we have got to go back mid to end of October. Great!! Apparantly its 10 weeks before that they can see us.
Waste of time.....so still no wiser guys but thanks so much for your advice so far. Do you think its in our interest to go see a independent mortgage advisor to look at our case for us? Or is that just pointless? Again, 1, coz of only one wage being able to proove, and 2, its too early?
Cheers. Oddgy.

Ian_Griffiths_Halifax

Oddgy, I've just done an Affordability Calculation with the Halifax and based on a £23,000 income (not used Maternity Pay as there is no job to return to) and 2 adults and 1 child in the house. Even based on a 40 year term their calculator says you could only borrow £69325 assuming you've no other debts.

It looks like you need to stay with C&G to me.