Am I In BIG trouble?

Euphoria1z

hi

bought my 3 bed flat for 165k nearly 2 yrs ago with a 15% dep. it was a 2 yr fix which runs out in july. now i want to remortgage at some point, however i have been made redundant. ill be leaving my job in june. now to get another mortgage with a new lender, i take it i will have to show/prove my wages? or can i still get a self cert of some sort? theres no way im going to be able to get a decent job straightway, infact it will take over a year for me to be earning roughly what im currently earning (aprx 20k).

so for the moment i will stay on the svr (its with the tmb) but i want a 5-10 yr fix... originally my problem was negative equity, and now its no job or a new job but alot less pay. is my only option to stay on the svr till till i can get a decent wage which, to be honest could be a few yrs and interest rates could kill me well before.

what other options do i have apart from selling? renting my other rooms not an option as i have a family. i have been considering moving out and renting cheaper but the wife has refused to move. (she doesnt understand the seriousness of our problems). she cant work as she looks after the kids. parents cant help .

shall i just sit tight ?

cheers

silvercar

Don't think you have much option other than sit tight.

You could investigate your wife working, child tax credits nowadays pay a lot of the childcare costs.

Euphoria1z

so is self cert out of the question or can you still get these mortgages? to be honest, i remember telling my broker my income, but no one asked for proof. is this still the case or not?i understand the rates will be higher. i just dont know what to do , i .e stay on svr or remortage. if stay on svr then for how long? if remortgage then how ? as long as they dony ask for proof of income. what about my p60 for the current year? will that do?

Comyface

If you're in negative equity, your only remortgage option is to pay off a chunk of your debt to reduce the LTV to a maximum of 90%. And even if you do that I'm not sure you could get a self-cert mortgage for that high an LTV (and you'd be lying about your income, v. dodgy ground there).

Have you asked your current lender what fixed rate options they have? They may just be able to do a product transfer for you.

Euphoria1z

i havent contacted them yet as the fix period ends in july, but there website states they will not be accepting new business. does that mean they will not offer new products to exisiting customers you reckon? infact their site also refers you to Birmingham midshires so i reckon that answers that question.
unfortunately i dont have any money to pay of a lump sum. my redundancy pay is a mere 5k which i will need whilst i look for a new job. even if i did pay that toward my mortgage, i cant really see it making that much of a difference?

hearts

Self Cert you will still need to have an income to get it. They may have once let them through without checks but try it now and you'll likey end up in gaol.

Comyface

It's possible they won't offer you a new product if they're not accepting new business. You may have to stay on their SVR for a bit and sit tight as you said.

ashleyk

Each lender is different and I think their policy for renewing mortgages probably changes week by week at the moment according to which way the wind is blowing.

I am in a similar situation to yours in part. We purchased our house just over 2 years ago on a 2 year fixed rate deal for £160K and almost 20% deposit. I was the sole money earner and self employed, so they asked me what I was likely to earn and that was it.

When our mortgage came up for renewal I was rather nervous because the last year hadn't been good and if they asked for proof of earnings it may have been tricky.

In the event when I called up they just went through a few basic questions without asking me anything about my earnings and offered me a 10 year fixed rate deal which starts in a few days time.

Working in our favour, I had never missed a payment and started to overpay a couple months before the old deal expired plus I had a decent amount of cash in the bank still.

I made a point of applying for a new deal before our equity slipped below the minimum 5%. When they recalculate the price values and equity levels at the start of April its possible we will even be in negative equity. In your shoes I'd try to start examining your options as soon as possible.

betmunch

I love the way you ask about self cert as if that could be an answer to your problem.

Self Certifying your income was set up to help people that hadnt got easy access to the proof of income required, but they must have actually had that income.

I'm afraid that it will not be the answer for you.

Good luck in your job search