HELP needed - changing our Morgage

sallyandmark

Hi all

We have a joint income of £40,000 a year, but are stuck.
We currently have a morgage for £171,000 with NR and can not change, although we are not in any contracte. We are paying £1,100 a month and need to change to get a lower rate to ease our pain but can not find anyone who will lend to us. Our property is worth £260,000 and I do not believe we have a bad credit rating.

any ideas or help as to what options we might have

Many Thanks Mark :idea:

beecher2

4.2 x salary is maybe the problem - go to a mortgage adviser who will know which lenders are most likely to offer you a deal.

Go onto Debt Free Wannabee forums if you're needing help on budgeting in the meantime.

_Andy_

Welcome to MSE

You state you "can not change" - who have you tried so far and what reasons are you getting declines for?

sallyandmark

Hi Andy

I must be honest we have tried a more direct route, and gone to the Banks directly, and not morgage advisors yet. We tend to get no feedback and just that say they we only give 4 x salary. We do not have bad credit, but did 2 years ago ask for the morgage to be held at interest only for 6 months when I was made redundant, but we have always paid on time.

Thrugelmir

Consider downsizing to rebuild your finances. Interest rates at some point will go against you. So even remortgaging may only give you temporary respite.

Mini_Bear

i too would consider selling in your situation, use the cash as a deposit and find somewhere a little cheaper and get a new mortgage.
if there are redemption penalties on your NR mortgage i would consider those - they can be very steep.
Good luck with whatever you decide - also is there no way to up both your incomes for a year or so? so the mortgage companies can lend at your higher salaries?

RedDragon22

It may help you to know:

Our joint salary is £48k but based on our scenario we are able to get a mortgage for £226k on a property of £266k

So your situation is better than ours in terms of equity and a lower multiple of salary.

It is possible, try a broker not the banks directly.

luckyfool

How many banks did you approach? How far the road did you go with each bank? Unfortunately if you have had credit checks with a number of them then this could also have damaged your credit score (making it harder to get the high score required by some lenders to offer the larger loan amounts).

You really need to speak with a good broker asap.

sallyandmark

Many thanks everyone I. We are going to book an appointment with a broker ASAP, as although I can see the reason for it to downsize would be a major change for the whole family and I am sure after visiting a good broker they would help.

Once again many thanks every one

Mark

herbiesjp

Definitely can be done on those figures, especially at that loan to value.

However, if you have children or any other debts, this will impact on your maximum mortgage potential - which might be causing the problem with the lenders you have approached.

As advised above, get in contact with a good broker who should be able to get you a better deal.

I'd suggest getting a copy of your credit files just to make sure there are no errors on there.