Change mortgage company but owe more than we earn

Julie_Rossiter

My husband & i are with a mortgage company but because we done a self certified mortgage with GMAC, how can we change to get a better deal each month however we borrowed more than what our salary's are!

Any ideas/advice would be greatly appreciated!

herbiesjp

What is the loan amount?
What rate are you paying?

What is the property value?

What are your incomes?

Find out from Gmac is you can move away without any penalties

Robert_Sterling_3

Julie_Rossiter wrote:

We borrowed more than what our salary's are!

Do you mean that your income is less than you said it would be?
Do you mean that your actual income is insufficient for you to be able to make the mortgage repayments?

Julie_Rossiter

We put 15% deposit down so GMAC do a self certified mortgage so you don't have to prove your income. The monthly payments are not a problem but i have just got it fixed for 5 years & we are currently paying £1050 per month.

Would like to try & get a better deal but when you add both our salaries together we would be about 40K short on paper. If you do it by the normal 3 times one persons & 1 times the other wage.

herbiesjp

Some lenders offer more than the income multiples you quote.

If you have just started a 5 year fixed rate I am guessing you will have high penalties to pay if you were to leave now. Find out from Gmac what the penalties would be, and then you can see if you would make up this penalty by paying a lower rate elsewhere.