Remortgaging - Salary now too low?

Tanyajoy

We are looking to remortgage, (and pay a £6,500 redemption fee to get out of our high rate fixed mortgage) but are worried that as our salaries are considerably lower than what they were when we took out initial mortgage.

When we look at mortgage calculator websites regarding how much we are able to get, they fall about £100,000 short of what our current mortgage is!

We are both in permanent work, but I have gone part time to look after our two toddlers, and my husband has retrained, and has had to take a salary cut.
(We have no other debts)

Can anyone offer any help? How much checking will the banks do?
Will we be able to get a variable rate mortgage?

beecher2

You haven't posted details of what the salary multiples would be, but if calculators are giving you £100,000 less than you need I don't rate your chances. Banks will thoroughly check your finances - you could phone your lender and ask if you can pay the ERC and be given a new deal but I'm not sure how many allow this. If you have £6,500 spare then overpay your mortgage.

Cannon_Fodder

Use the £6,500 to offset the high mortgage payments to the end of the term - a drip feed of £200 a month to ease payments will last 32 months and earn interest on the dwindling remainder. In time, presumably, re-trained hubby will get some pay rises, and maybe you'll get something part-time when the kids are at school...

hillcats

That sounds like good advice from B2 & C-F

koochy

We have a very similar problem and have entered details onto a few different morgage calculators.

We have had several phone calls from different Mortgage Brokers. Who quite often didn't get back to us as really nothing they can do.

We now have been contacted by a Broker but they are giving us 6.5 times salary and extra funding to pay credit cards but we are a little uncertain as sounds too good to be true.

I have set up a new thread to get some advice as I am not sure about broker but if they really do manage to get us the Mortgage there will definitely be someone who can help you but not sure myself. They are very pushy and say could be sorted next day.