need to remortgage to move but bank wont remortgage for same amount as we owe?!!

BARNSLEYLASS_2

Helpp! My hubby and I havee a halifax mortgage, and have done for 10 years. Our mortgage is for 155k. since we took it out i have had a baby and now work part time. We are wanting to move house, not increase our mortgage, simply keep it exactly the same amount and now the halifax says we cant afford to do that...........i just dont understand! We have paid it every month on time for 10 years and now they wont budge!!

beecher2

In order to port, Halifax will re-assess your income - since you're now part time you probably can't borrow the amount you did when you were working full time. They're under no obligation to allow you to port - you don't say what your household income, or loan to value is, so no-one can really comment on the likelihood of another lender allowing you to borrow 155k.

BARNSLEYLASS_2

Our annual income (before tax) is £57,000

The house we are in - value £185000 minus mortgage of 155k new house so £30k in equity. The new house we are after is £185,000 so we were hoping to break even so would be an 80-85% mortgage depending on how much we could put in in addition from our savings. We have a financial advisor looking into it for us but again, its really worrying for me because I just assumed that they would be happy for us to continue as customers, we have been for 10 years and have never missed a payment etc etc.....not sure how it works but im proper stressed!!!!

BARNSLEYLASS_2

jut ignore the grammar error as above "The house we are in - value £185000 minus mortgage of 155k new house so £30k in equity" i didnt delete a sentence properly!!

Thrugelmir

Is your mortgage interest only?

somethingcorporate

How long was your original mortgage over? having it for 10 years and only having 30k in equity makes it sound like you have taken some equity out in the past or been on interest only. Doing this for ten years won't make you a good candidate for a new mortgage I am afriad.

jennieshrew

I have exactly the same problem, similar income (slightly lower) and used to be full time now both DP and I are part time. Want to move house 30K equity, similar value mortgage.

Phoned London and Country brokers and they said with an average credit rating and 15% equity they would have access to a good range of morgages for us so try giving a broker a call and tell Halifax to begger off!

I stupidly tied myself in to my current provider 16 days ago with a 14 day cooling off period so very scared current lender will say same thing as you got!

Burridge60

It's called affordability.

Income matters but not as much as your outgoings versus net income and the living costs assumed by any lender's "affordability" model.

Halifax tend to be on the higher end of the affordability lending scale subject to credit score so it could be your commitments that drag you down below their maximums?

getmore4less

somethingcorporate wrote: »

How long was your original mortgage over? having it for 10 years and only having 30k in equity makes it sound like you have taken some equity out in the past or been on interest only. Doing this for ten years won't make you a good candidate for a new mortgage I am afriad.

A 30 year loan that is currently £155k after 10 years @ 5% would have started out at £190500 and been £1023pm so around £35k equity through payments.

So not enough detail of the situation over the 10 years to determine the what has been happening but only having £30k equity when some of the highest HPI has been going on does suggest something is missing from the OP.

minimadtrix

Can I just add my two penneth-worth? I'm with Halifax. I've moved areas, so am currently renting as well as paying a mortgage and took a pay cut. Got a buyer for the house and raced down to the local branch to check how much I would be able to borrow.

Halifax have figured that whilst I can currently pay my £122k mortgage on SVR, when I move, I will only be able to pay a £87k mortgage!!! And what was their response to the computer generated figure? "Sorry."

So, I rang their phone line to ask them about consent to lease the property - basically, moving the mortgage to a buy to let, but they don't call it that, which would cost me £200 a month more than I'm paying now on the mortgage, but would still be for the £122k.

Am I missing the point somewhere?

I too am on the case with a mortgage broker and my buyer has sadly gone :mad:

BARNSLEYLASS_2

Burridge60 wrote: »

It's called affordability.

Income matters but not as much as your outgoings versus net income and the living costs assumed by any lender's "affordability" model.

Halifax tend to be on the higher end of the affordability lending scale subject to credit score so it could be your commitments that drag you down below their maximums?

We have a repayment mortgage on it and remortgaged in 2007 to extend hence, if we hadnt we would have 80k in equity now. We seem to have sorted some of it out with the help of our financial adviser, she has gone directly to halifax (not via the telephone service) and they have said that if I pay off one of my cars, they will allow us t borrow up to £170,000 - only 50k more that they said on the phone! Work that out!!!

Ive also seen that the post office are offering some good deals, especially for those out there whose circumstances have changed as their affordability calculator seems to be different to the others out there.

In terms of affordability, we have in excess of £1200 per month after mortgage, and all bills etc so I understand that lenders work things out differently, if we couldnt afford to pay our bills, this would have been reflected in our credit score which has never been impacted by ANY late payments etc etc.......my advice is - go direct to the lender not waste your time and get stressed out talking to call centre operatives who are only "reading from a script"