Remortgaging after both ill at no pay

skistones

Our A&L fixed rate runs out at the end of this month. My husband and I have both been ill and off work at nil pay for some time during the last 2 years, and wonder whether it's worth trying to remortgage.

Our balance is about £94k on a flat value of about £170k. We pay off credit cards in full every month and have no other debt or missed payments.

I was off work from before we got the mortgage to Nov 09. My income has varied each month (mainly due to HR's incompetence...) but has total over the year was £30k from employment and about 2600 from benefits. I'm still on a f/t contract of £43k pa, but was planning to sign a part time contract giving me £21.5k pa.

My husband has had various spells off work, some paid, but most recently unpaid from May - Aug 10 and Sept 10 until last week. His income in last year would total about £13,500 from employment and about 2000 from benefits. He's building up his hours to f/t over the next 8 weeks and is on a f/t contract of £43k pa.

We've been with the same employer throughout, neither of us receive benefits any more and thanks to finally getting treatment don't expect more spells off ill.

(1) Would anyone consider us for a remortgage with this history?
(2) Would it make any difference if I sign a part-time contract before we remortgage?
(3) Would it make a difference if we waited until my husband had been back at work for a while, and if so, how long?
(4) If we call A&L to enquire about remortgaging, will they ask - or care - about actual income or contracted income, or about our sick leave?


Thank you for any help you can give!

dimbo61

If you are just changing deals with A&L and not borrowing more then I dont think they will ask for you last 3 months wage slips.
If you are going to go part time then sort out the remortgage before you do ! and consider a long term fix for security.
Only if you remortgage to another lender will they want all your income details as A&L have already lent you the mortgage money in the first place

Wh05apk

If you remortgage elsewhere, they will base it on your income CURRENTLY and will normally ask for last months payslips as confirmation.

Provided you can show about £25k currently you should not have a problem.

Staying with A&L will be simplest, they will not need to re-underwrite financially, however as they are effectively winding down, I doubt if their rates will be competitive.

Crashandburn

Check with A&L what rate you are dropping to. Some of their fixed rates came off onto a lifetime tracker rate rather then their normal SVR which has seen a massive drop in interest payable for some people.