Moving home & transferring the mortgage.

bigbadandy

Sorry this is a bit of a long story to get all the details in, so please bear with me.

My wife and I currently live in quite a small house in a fairly expensive area with our 2 year old and 2 month old. As we have just had our second child we have decided it is time to move to a bigger house in a less expensive area at the same cost.

We have a mortgage with the Nationwide for £280k, the house is worth approx £375k and we are tied in om the mortage for another year. Since we did not want to borrow anymore money we'd intended just to move the mortgage over to the new property, however I have just found out that Nationwide will want to look at our income even though we are not asking for further borrowing.

Unfortunately since we got our mortage my wife was made redundant and so set up her own business as a sole trader working from home, in the last 12 months she has made £29k, for the last 2 months of that recieving £600 a month Maternity Allowance. I earn a £60kpa which would mean without my wifes incomce borrowing 4.7 times my salary which I presume at this time no lender would be prepare to do.

Our combined incomes £93k would be enough to easily borrow £280k if my wife was PAYE and not self-employed, but as I understand it she'd need 3 years of accounts.

Has anyone suggestions on what we can do to get around this problem? Are there lenders that would lend 4.7 times my income or at least take a my wife's income into account?

dimbo61

Go and see the nice people at the Nationwide and explain your situation and see what they can do.
They will also tell you if they will allow you to port the mortgage and any ERC you will have to pay.

bigbadandy

Thanks for that! I've booked a meeting next Friday. We have to take our life's history along with us. ERCs would be a bit cheeky,

When we moved from a flat to our current place before the 2 years was up, I ported the existing mortgage over and took out a separate mortgage for the additional borrowing. No ERC. This was with the Abbey though not Nationwide, fingers cross they won't try it on. Moving house is going to cost about £20k with agency fees, stamp duty and other costs taken into account..

dimbo61

You dont give your current mortgage rate ( is it 2.5% SVR) now if you are keepng the same LTV or less they may allow you too port the mortgage but what happens when rates go up!
I am sure they will try and sell you a tracker deal or fixed deal to get you off the very cheap SVR you are on but see what they say and good luck.