Would we be able to mortgage again?

Rebob

Hi

We are thinking of downsizing as early this year hubby had an accident with his right hand. As his job is a very heavy manual one he if finding his hand is painful so is thinking of finding a lighter job with less hours, possibly part time. I am unable to work and we have a young son so get CTC and a small amount of WTC.

We have about £100k in equity at the moment in our current home and the houses we would be interested in are about £125k so we are 25k short (lot less than current mortgage). We have no other debts and pay everything on time.

Would any lenders deal with someone on part time income and would they count CTC, WTC or Severe Dissablement Allowance.

Thanks in advance

Barney088

Quite a few lenders would be able to help, best to see a broker. The equity will buy you options, as the lenders have nothing to lose financially. However the "bad press" around repossessing someone on income support would be a factor in their willingness to lend.

Your husbands small part time job would add wieght to the deal and probably open a few more doors. From memory the Leeds do allow Working family tax credits (if thats what WTC is) they will not be alone though.

Good luck

HelpWhereIcan

Tax Credits etc - Alliance & Leicester, Accord, Halifax, IF, Bank of Scotland, Yorkshire Building Society to name a few (not a definitive list).

The main issue you will have is the lender's minimum loan (normally 25k) so you may need to borrow 25,500 or something to ensure you qualify, but it can be done.

You may find that there are lenders not named above who may be willing to lend in your situation, but depends on OH's income from p/t work etc.

Get some advice from a broker, but I do not think you will have any problems

Hope this helps

Rebob

Thanks for the replies. I did not want to sell our current home to find we are not able to get another mortgage. I would always talk to an adviser anyway but wanted to know before we started looking at houses if it is possible.

MortgageMamma

The your best bet is to get an agreement in prinicple done now and to have your broker talk through your case prior to submitting to your recommended lender

zzzLazyDaisy

Re the minimum loan - I was in a similar position a few years ago - I needed £17k, but the minimum was £25k. So I borrowed the £25k, then when it had all gone through, I made a one-off lump sum payment straight away, thus bringing it back down to £17k

MortgageMamma

good idea, but the OP needs to make sure they would have a mortgage product to facilitate that - they are available, Northern Rock has one