Refused remortgage can i do anything

oliel

Today the lady has said its to do with income - over the basic we get about another £5k per year in extra overtime - she said generally they only take 50% of overtime. She said I need to send my child benefit letter in as that might make a difference. I will do that when I get it. The debts of £13k have not accumulated as such they are for other work that has been done on the house and will be paid off if we get the remortgage - remortgaging would make us around £200 better off each month.

oliel

Forgot to say she said she couldnt tell me exactly why we had been refused until Monday as underwriters are not in today. I think if they refuse I may see a broker as 1) could do with saving the £200 a month and 2) would really like to finish house off.

getmore4less

oliel wrote: »

Today the lady has said its to do with income - over the basic we get about another £5k per year in extra overtime - she said generally they only take 50% of overtime. She said I need to send my child benefit letter in as that might make a difference. I will do that when I get it. The debts of £13k have not accumulated as such they are for other work that has been done on the house and will be paid off if we get the remortgage - remortgaging would make us around £200 better off each month.

Thats part of your problem should have looked at getting the money on the mortgage before starting work rather than using expensive debt to do it.

oliel

I think that's my decision if I want to do it the expensive way - some of us dont have the choice and I have never missed payments on anything and never would.

oliel

Thanks for your help Hebries JP, I have looked further into things.

Hubbies Basic £17500
Hubbies guaranteed 2nd job £2198 (50% £1099)
Overtime etc both jobs £4500 (50% £2250)
My Basic £9875
Child Benefit £1726

Am i correct in thinking that they only take 50% of 2nd job/overtime? therefore total earnings overall £32450 (taking 50% of overtime & 2nd job) if so i would need around 4 times joint incomes, with an LTV of around 52% as property is worth about £240 (im being prudent as we purchsed for £246 and have made loads of improvements). Thanks again for your constructive help which is why i came to this site.

herbiesjp

They should take 100% of the second job

However only 50% of the overtime

However with Abbey, you have to fit their affordability calculator and what it says your monthly disposable income is - you have to have the amount left over each month as stipulated by that calculator

If you do not, you will not get the mortgage agreed.

Hopefully they will look at your figures carefully - a good broker would be able to discuss first with their contacts to make sure any problems were ironed out before application

Other lenders would not be making it quite so difficult

getmore4less

oliel wrote: »

I think that's my decision if I want to do it the expensive way - some of us dont have the choice and I have never missed payments on anything and never would.

Just borrow another £9k on the mortgage that may come in under the income threshold they want.

DVardysShadow

oliel wrote: »

I think that's my decision if I want to do it the expensive way - some of us dont have the choice and I have never missed payments on anything and never would.

Ow, touchy. Being a public forum, there is more to this than just your problem. Other people may be reading this who are about to embark on a house like yours with similar finances and getmore4less's point could help them, even if it is too late for you.

In the same vein, I'll continue and say that part of your lender's problem [which getmore4less is getting at] is that while the loan may actually look alright to them, IF you use it to pay off the finance, they have no guarantee that you actually will pay it off. Now, you can take that point away, think around it and perhaps go back to Abbey, see if that is the problem and see if anything can be done to address their concerns.

oliel wrote: »

Thanks again for your constructive help which is why i came to this site.

That is snide. Getmore4less is also being helpful. You have only had help on this thread and nothing to complain about.

herbiesjp

DVardysShadow wrote: »

In the same vein, I'll continue and say that part of your lender's problem [which getmore4less is getting at] is that while the loan may actually look alright to them, IF you use it to pay off the finance, they have no guarantee that you actually will pay it off. Now, you can take that point away, think around it and perhaps go back to Abbey, see if that is the problem and see if anything can be done to address their concerns.
.

If it is a condition of the mortgage offer, it is normally down to the solicitor to get evidence/proof that it has been paid off