Any ideas

linda9930

Hi We have a fixed term mortgage with NR (£970 a month interest only)which comes to an end in August. and the letter we received clearly states that they do not want to carry on with mortgages, and the interest rate will be 4.79% our loan is £170,100.00 with 17 years remaining. New payment is £739.70 Our home is worth £300k-£350k. We would like to move our mortgage to a better rate however this is our problem...... I am on a low paid job less than £950 a month, my partner is selfemployed but is on a low income of around £5k a year, we have savings and he also has a pension of approx £500 a month, we have always paid our mortage and even in the past over paid. We have no other loans and no credit card bills. So how can we change to a better deal without proof of earnings as I am sure with our income no one would want to deal. Or would we be better staying put.
Thank you for any replies
A worried Linda

ACG

You wont be able to change.

Some lenders may allow a mortgage to go through without checking your income, but they would want you to at least confirm your wage can support such a large mortgage....which im not sure any lender would say you can.

Some lenders will allow mortgages based on affordability rather than x times your income. But as its also Interest only, they would want to see you have something in place to pay it off at the end of the term (This could be savings, an Endowment, your 25% lump sum pension, inheritance etc).

Without knowing whether you have something in place to pay it off at the end and how long you want the mortgage to run for its difficult to say.

ViolaLass

No lender will give you a mortgage without checking your income (they used to do Self Cert but that's long gone).

Do you have a repayment vehicle?

ACG

ViolaLass wrote: »

No lender will give you a mortgage without checking your income (they used to do Self Cert but that's long gone).

Do you have a repayment vehicle?

Thats not quite true.

We have submitted business to one lender who so long as everythng stacks up and their credit rating is near perfect, they wont ask for wage slips. Some times they may request bank statements but not every time. They do review a lot of cases though, where they ask for everything under the sun, so its hit and miss whether its a quick mortgage or not.

linda9930

Thanks for all replies, as I thought we may not be able to move mortgage.
We do not have anything in place to payoff the mortgage.
Well at least we will be £200 a month better off, until the rates change again
Thanks again
Ever Hopefull
Linda

linda9930

Opp's made a big mistake... Start again Mortage £149500, (£767.90) Unsecured Loan £20100(£159.71) both over 17 years with NR total montly payment £927.61 Interest rate 6.19%.
New rate will be 4.79% Total cost £739.70.
Could we take out a cheaper loan to pay of the 20k to reduce costs.
House Value £300-£350k
Linda

Thrugelmir

Use the reduction in monthly outgoing to start to reduce the debt you owe. Doubt you'll obtain anything cheaper than 4.79% in the way of new finance.

linda9930

Good answer that's what I think we will do, we have managed so far with out the extra cash
Once again thank you to everyone
Kind Regards
Linda