Where do we stand ? which way to turn?

babybakey

My husband and i have been discussing the future this weekend. we have a mortgage of £101k weve set it to 21yrs as off a few months ago ( no tie in as just adjusted the length of time) We have 3 small children all under 5yrs im self employed but have no accounts as this is new. Hubby earns 30k with regular bonuses, shift allowances and other pay outs he gets from work.

We are considering getting a fixed rate for 3 years or ive heard of the trackers (might be good if someone could actually explain those as im not great at getting the jargon) is it true they seem to run lower than usual standard variable mortgages?

We have work needed on the house which would be doable at around £3.5k and weve a £2.5k overdraft which i guess would be good to clear.

Are we likely to get £109k for example on my husbands wages? the house is worth £150 roughly so its not over 75% LTV ( i got that bit of jargon :T)

Is it worth us remortgaging or are we best off getting a loan? or pottering on and hoping we can cope with the rate rises when they happen and save for the repairs ( which would take a long time with the little ones being so small)

Anyone have any advice as to what would be best for us and if were likely to get a mortgage based just on hubbys wages.

Thank you in advance for any help xxx

Shelly

Thrugelmir

Address the overdraft. As this would be a major stumbling block to remortgaging to another lender.

Check what mortgage products your lender is currently offering. As this may offer an opportunity to reduce outgoings.

babybakey

were ploughing all we can into the over draft so it will go in id say 6mth. Were currently with Mortgages one plc who say theyre not offering new mortgages or remortgages. We shortened the term from 27-21 yrs but your not allowed to over pay etc.

getmore4less

babybakey wrote: »

were ploughing all we can into the over draft so it will go in id say 6mth. Were currently with Mortgages one plc who say theyre not offering new mortgages or remortgages. We shortened the term from 27-21 yrs but your not allowed to over pay etc.

What rates the mortgage.

Probably should have cleared the OD before shortening the terms

babybakey

were on 2.9 at the moment on variable.
If they raise the rates were wondering if theyre likely to go in 1/4 or 1/2 percent rises.
The over draft has only just happened as weve had to get hubby a car when his old one blew up so unforseen really. Were ploughing it off weekly though as and where i find extra cash or save on things.

Were wondering how wise it would be to stick on the mortgage were on really especially as the rates are still so low , i wonder if theyll raise very fast at all surely it would plunge millions into difficulty?

babybakey

Weve been really looking into things , i wondered if anyone had any idea if its possible to get a 35yr motgage for £135500 on hubbys 30k which will take into account my child benefit and tax credits? or do they not count as income? weve found the [erfect forever house and wondered if as were remortgaging anyway that we could get the perfect house which we would then be able to work on paying off.

Anyone know if this would be possible , ive even looked at upto 5% and we can afford it if we go for the 35yrs were only 30yrs old so its doable i think. just need to find a product available to us.

holly_hobby

Child benefit, income support etc, can not be classed as income for mge purposes ... even so the 30k you have quoted against the mge reqd is well over 4 times income .... if your husband is not a newly qualified professional i.e solicitor - where his income will be increasing over the coming yrs, you will struggle to find a lender who applies traditional income mulitiples, to stretch this far.

So you would be looking at a lender who uses affordability criteria to get somewhere near what you want.

My advice would be to consult with a whole of market mge adviser who will know which lenders still use an afforability matrix, and/or can be flexible if the LTV is low i.e less than 75%.

Holly

babybakey

Thanks holly , Were going to g and see if we can speak to a financial advisor and get some figures done. I shall be keeping everything crossed , using the mortgage calculator on here ive planned for all sorts of figures with the interest and if we took it over 35 yrs we should be fine on most figures.
My earnings wont have been counted either so when i get more steady i think we could remortgage again in say 5yrs and get a better rate just when the interest rates are getting higher and probably harder to manage if we get put on a high rate.

weve looked into the history of the house using a few sites and i think we could get a couple of grand off the price too as theyve had it listed since before xmas and are looking desperate to sell !!! theyve reduced it twice already.

keep your fingers crossed we get a good answer.

holly_hobby

Sorry for delay .... I've everything crossed for you ;-)

Holly