re-mortagage help please? (MA/IFA's?)

elliemfl

Hello all,
Hoping someone can help me here.
My husband and I bought our house 3 years ago for £183k.
We have £158K of mortgage outstanding.
Our fixed rate has now finished, and paying the alliance and leicester SVR about 5% I think at moment.

However... husband and I are now separating. It's all very amicable, not fighting over finances or anything. I am going to stay in the house, and want to re-mortgage in my name. Husband is fine with this. I will need to borrow the £158k oustanding on the mortgage. My question is this:

If I remortgage will the mortgage co. take the purchase price of the house (180K) as the value, or will they send a valuer around? If they do this, will they base the loan-to-value percentage on their advisers value, or on the £180k?

I am worried because prices have fallen since we bought the house, it's probably worth about £155k at the moment. This means that if it was revalued I would effectively need a 100% mortgage because thats roughly what is left to pay.
I hope this makes sense. I earn 28k before tax if that's any help.

Can anyone shed any light please?
Thanks so much
Ellie

_Andy_

I think you'll struggle to borrow that much in relation to your income.

elliemfl

I do realise that I won't find it easy to borrow that much.

But that doesn't really answer my question about the valuation.

Can anyone help with that?

Ellie

_Andy_

To put it more simply, I don't think anyone will lend you 5.64 your salary at all.
As you've already stated, it's in negative equity, so in any case your choices will be limited to your current provider.

unite79

And your current provider wont allow a transfer of equity, ie your husband to be removed as you can-not afford to service the loan (in there eyes)

To answer your question, the value will be the value it is today!

unite79

Also i would change your target for a Wii for your husband!

beecher

You've essentially got two problems - you're in negative equity so would have to come up with enough money to have an LTV of less than 90%. On top of this your income is nowhere near high enough to be allowed to take the mortgage on. Options are your husband staying on the mortgage, or selling up if you have enough money to pay off the lender that is.