Remortgage time

somi

I am with halifax and my fixed ratre at 4.99 ends feb 09. I am recently getting some free valuation done to ascertain the price. However in June this year my flat in maida vale was valued at £370k and i have mortgage of £195k. I can reduce this to £190k

This mkaes for a low LTV so tharts good. Secondly i have never defaulted, have been paying my mortgage since i took out last may and my credit score is good. So low ltv and good credit score is good thing right.

However, My income is 22k plus i earn 3k part time. My partner is childminder but hasn't worked this year. I can rely on other sources like taking on lodgers bringing in 2-3k. My job is stable and i am doing some training in november to become domestic energy assesor that is required by people who are selling on renting their properties, so this will bring some income after qualifying. I live very modestly and econmise big time, have two boys aged 9 and 7.

I phoned one bank but they rejected me. their rate was same as my current rate 4.99%. they rejected my remortgage query. i have been paying my mortgage in time, never had any problem. and even if i get in trouble i have good equity so could they have not given me remortgage at same rate or slightly higher considering my credit record and ltv

any help and guidance much appreciated in advance, SVR not a option. i try to explain all the above to them but they just wouldn't listen but just say problem is the high multiples. But this is not what i don;t understand who benefits for making it harder for homeowners to remortgage to good rate, after all it was these banks who gave us these loans in the first place in high multiples so they must do it again. and if i get good rate then i have much better chance of reducing the debt hence lowering the ltv.

nesssie1702

Have you spoken to Halifax to see what they can offer you in the first instance? - you're already a customer and they know what your payment record is like.

grogdog

on that income you have no chance of moving to another lender, only option is getting another deal from halifax but it will be nearer 6% to what you are paying at the minute

_Andy_

Just to echo the above - no other lender will consider that income multiple. If you stay with your current lender they won't re-underwrite the case so you could look at what options (e.g. fixed rates) they have.

Toughluck

If you are on interest only and take interest only, and like wise if you are on repayment and take repayment mortgage over the same term your monthly payment are going to increase so think about your budget.

Are you on I only or repayment. If repayment what is the term?

somi

sorry forgot to say i am on interest only and by feb i would have £9-10 of savings i think. when is the best time to approach my current lender halifax considering they are changing over soon to Lloyds and secondly anything nearer to 6% would be fine,

i guess the main question is how can i convince them (lenders) that i am comfortable paying so far my mortgage as my record shows and with no other debt on me. I am hard worker and hopefully will increase my income. The problem is that i suspect some or many only take your main salary into consideration without taking low LTV and good credit score to account. How can i make these two factors really count for me, i know in paper affordability seems stretched but so far i have been ok with it so why don't they keep like that at 4.99% and that goes for many others in my position with low ltv and good credit score.

Toughluck

As Andy said, Halifax will not underwrite the mortgage again so you don't need to worry about score, LTV anything.

_Andy_

somi wrote: »

i guess the main question is how can i convince them (lenders) that i am comfortable paying so far my mortgage

Sorry to be blunt but you can't. Just because you feel you're comfortable paying for the mortgage, it's not going to change any lender's criteria.

There are no lenders aside from your current one who will help.

herbiesjp

somi wrote: »

How can i make these two factors really count for me, i know in paper affordability seems stretched but so far i have been ok with it so why don't they keep like that at 4.99% and that goes for many others in my position with low ltv and good credit score.

Have I read this right?

Do you want them to keep you on 4.99% becuase you have been paying your mortgage on time?

Well I would like that also please!

But it does not work like that I'm afraid

Now that your deal has finished you have to choose a new deal - and based on what you have said, and has been pointed out numerous times above, the only lener that will agree a mortgage for you is your current lender

dimbo61

Make an appointment with your Halifax mortgage adviser and see what deals he or she can offer you as an existing customer.
Consider a fixed rate deal if you are worried that rates may go up
Keep your savings ( as an emergency fund )
Hopefully in a few years you will be able to change onto a repayment mortgage and clear your debt GOOD LUCK

somi

When would be the best time to make an appointment, i mean it is still 5 months away and current climate is it advisable to delay the appointment till things are more certain. Couple of days ago i thought about making appointment but last couple of days with US bail out maybe i should wait closer to feb.

what do you guys think