Mortgage Dilemma - help ?

Mollys_Dad_3

We've just accepted an offer on our house and want to move (very dirty farmer next door) however, am concerned that we are not going to be able to keep our C&G mortgage that we currently have (0.49% above base rate) as I have been made redundant and cannot provide the last 3 pay slips that they are asking for so that we can port mortgage.

Both my wife and I have 999 credit ratings and no other debts. Mortgage payment (interest only) is only £249 a month - so very affordable even just on wife's salary.

I fear that C&G will do anything they can to get us on a more attractive mortgage product (for them).

Has anybody come across similar situations?

:eek::eek:

VIGILANT22

Check with C&G...it's their money after all

Conrad

C&G do not automatically request slips. They can write to an employer instead. I'm assuming your wives income is'nt sufficient.

Mollys_Dad_3

Conrad

Thanks - they have requested both of our last 3 pay slips. Mortagage is £259k, wife's income c£31k - so not enough. We want to keep mortgage at same level to avoid redemption penalties if we reduce amount or repay and go with another lender. We will have £280k capital as well from house sale but this doesn't seem to come into the equation - we want to use some of this cash to improve property we are buying at £288k.

We will be able to afford repayments from wife's income, interest from capital and the fact that I should be securing a job in the next few months - it is just the timing of the sale that is rubbish but we don't want to lose our buyers (no chain).

Is there any thing we can do to persuade C&G to leave the mortgage as it is? (We have never missed a payment and have always banked with Lloyds as well)

Dan_1976

You can be honest and then get on one knee!

To be honest, although in your eyes this is a simple case and you can afford it. If they lend you this and they know your not working and all the details in full, how can they go to court to repo you if rates go up to 7-8% and you have not job yet?

Sounds harsh but you have to look at all points of views!

_Andy_

At that income multiple I'd imagine it would be a straight decline.
I hope you declared you weren't working on the app?

Mollys_Dad_3

Andy - not put in full application yet. The original mortgage was granted 4 years ago when I was working (only recently been made redundant).

I understand things from C&Gs perspective and if I was in their shoes I probably wouldn't port the mortgage - however, from our perspective if we needed to we could repay the whole balance immediately and get loans to do work on the house but these loans would be at much higher rate than mortgage - so just trying to do the best for us - in the knowledge that C&G can get their money back almost immediately.

Does anybody have experience of getting somebody to act as a guarantor on the outstanding amount? My Mother has said that she would do it, putting her house up as a guarantee but we don't know how that would work.

Personally I'm tempted just to put in my last P60 and some indeterminate pay slips and keep my fingers crossed but my wife is not keen on this!

VIGILANT22

Do you realise you would be commiting mortgage fraud...anyhow they will require your last 3 payslips..as this is nearing the end of the month...feb, jan, & dec...

Conrad

Mollys_Dad wrote: »

Does anybody have experience of getting somebody to act as a guarantor on the outstanding amount? My Mother has said that she would do it, putting her house up as a guarantee but we don't know how that would work.

Personally I'm tempted just to put in my last P60 and some indeterminate pay slips and keep my fingers crossed but my wife is not keen on this!

C&G can consider guarantors. If you use those internet payslips your asking for trouble as lenders know the signs to look for now - I saw lots of examples of these payslips pinned to the wall in an underwriting department! I'm not suggesting you were considering using these.

Mollys_Dad_3

Thanks. I think I will now tell C&G the true situation.

Do you know if they will look at guarantors with valuable assets as opposed to good regular income? I ask this as my Mother is 62 and obviously cannot prove that she will be in employment for long. However, she has a very valuable property with no (possibly £20k) mortgage.

cashorcheque

I think C&G (like all lenders) are being very strict at the moment. We are with C&G, never missed a payment in five years, and need to move house because my new job is in a different area and my contract requires me to live within 50kms of my workplace. The new area is cheaper so for a similar 2-bed terrace we'd be able to have a smaller mortgage, so we'd effectively have been trading down from a £205k 100% mortgage to a £170k 95% mortgage (we have 5% for a deposit). But because we have a loan they won't allow us to do it. They said we could have the 95% mortgage if our parents gifted us the deposit and could prove they had had the deposit in a bank account for three years.

Long story short, we're selling up anyway, paying back the ERCs, and renting. We'll reapply in six months or a year when we'll have a bigger deposit and (fingers crossed) things might have eased up a little. If you have to sell, is this an option for you?