How do I get a mortgage on low income?

glenn12304

I currenty own my house ( i have paid off the mortgage) but have a few loans and credit cards that I need to sort out. The repayments are really high every month, so I need to remortgage the house to pay off the debt of around £35000. My working hours have been cut and I am now on a low income, although I own the house worth arond £100,000.
I have approched my bank and applied for the mortgage but was declined. Myself and my partner have tax credits that boost our income greatly.
Is there any other options?
By remortgaging I will cut my outgoing bills from £950 per month to aroung £225 per month!
Any suggestions please?
Thanks

betmunch

Ask a local Mortgage Broker to help you out.

If you go to your bank they will only be able to offer you their own products. In your case your bank may not accept your tax credits which could be why you were declined.

glenn12304

I will do that thanks,
My bank told us that they were able to accept our tax credits as extra income because we have two young children, but was still declined.
Its quite frustrating, but I'll definately speak to a motgage advisor.
Thanks

betmunch

Could have been a different reason then.

I had a client turned down by his bank for being too old, why on earth they let him even apply astounds me!!!

A decent broker will be able to either help you, or tell you exactly why you cant be helped.

glenn12304

We were very unhappy with the bank, as they done an initial credit check and was passed, it was only when we went for the second meeting that another credit check was done and we were refused. I am 31 and my partners only 26 so dont think it was our age! lol.
But have lost faith in my bank I must say.
Thanks for the advice