new mortgage

shortiegal

Im looking to change my fixed rate interest only mortgage which ends in September to a better deal.

Unfortunately im on a low income and have come up against a brick wall, having said that i have never defaulted on payments for this or any other payments.

Need help please.

_Andy_

Interest only, with insufficient income, is probably going to mean you'll need to stay with your current lender. Give them a call and they'll let you know what rates they can offer.

shortiegal

Have just called them, hence this message, they have nothing to offer!!

_Andy_

What is your income and how much do you owe?
What (realistically) is the property value?
How do you intend to pay back the capital of the mortgage?

shortiegal

At the moment around 15K until my youngest is old enough for me to do more hours
Mortgage is 105K left
Worth around 140K

_Andy_

OK sorry to be the bearer of bad news but you're definitely stuck with your current lender.

beecher2

I don't know how you can cope with that size of income multiple. Find out what your deal goes onto in September, ie SVR or tracker. It may be less than you're paying just now, but it does mean that when rates go up your payments will rise too.

andrewmp

beecher2 wrote: »

I don't know how you can cope with that size of income multiple. Find out what your deal goes onto in September, ie SVR or tracker. It may be less than you're paying just now, but it does mean that when rates go up your payments will rise too.

At 5% that's "only" £437 per month, do-able on £15k probably, not very nice though, especially with a kid.

Does the £15k include child benefits etc? What is your lender's SVR?

_Andy_

I think long-term the OP may need to think about selling - given the mortgage is interest only and the income probably wouldn't cover repayment.

andrewmp

_Andy_ wrote: »

I think long-term the OP may need to think about selling - given the mortgage is interest only and the income probably wouldn't cover repayment.

Long term he/she might earn more though, she said it's due to her having kids.

VIGILANT22

andrewmp wrote: »

At 5% that's "only" £437 per month, do-able on £15k probably, not very nice though, especially with a kid.

Does the £15k include child benefits etc? What is your lender's SVR?

Maybe do-able if the lender was you!! however no lender is going to lend 6.9x salary, then trying to fit this with lender's affordability taking kid/s into the equation....this would never be considered.

The OP would have to be earning in the region of 26k with no dependants to be considered for this amount of lending.

Andy is quite right that they may have to sell, due to the fact as the years go by the OP is nearing retirement therefore reducing the term they will be allowed to take the mortgage over so it does not extend into retirement. A reduced term means higher monthly mortgage payments....income would have to fit with these repayments so maybe then 26k wouldn't even be suffice to satisfy lenders......