Please Help!

Lodge

My current mortgage deal will end in a years time (previously had a 3. something fixed for two year deal).

In the last month I have had a CCJ for an old credit card debt.

Will the bank offer me a new deal?

Also.

I have a mortgage for 115K.

The property is worth 150K.

So plenty of equity in the property (35K).

We have a baby on the way and ideally will need a larger home in the next couple of years.

My Salary is approx 30K.


Would the Bank considering lending me more money, even though I have this CCJ (all be it I have a fair amount of equity)?

Any advice or experiences would be appreciated.

Thanks.

L.

kingstreet

You'll probably be offered a new deal by your existing lender without further status checks. A new lender is likely to decline you, so moving to a new lender may not be an option.

Lodge

kingstreet wrote: »

You'll probably be offered a new deal by your existing lender without further status checks. A new lender is likely to decline you, so moving to a new lender may not be an option.

Many thanks.

What about if I apply for further borrowing?

Would my current lender consider it?

Senior_Paper_Monitor

Extra borrowing and/or porting will involve standard criteria check - so unlikely to happen (not impossible now if the rest of the file is clean, but unlikely - in a couple of years time more probable).

Size of the CCJ debt will also be important in fnal decision.

A new deal on curent property/loan with same lener should be OK.

Lodge

Senior_Paper_Monitor wrote: »

Extra borrowing and/or porting will involve standard criteria check - so unlikely to happen (not impossible now if the rest of the file is clean, but unlikely - in a couple of years time more probable).

Size of the CCJ debt will also be important in fnal decision.

A new deal on curent property/loan with same lener should be OK.

Thanks for the advice.

Is the Loan to Value of any consequence, or is it purely down to the CCJ against me?

Also, what is the usual ratio of lending to salary nowadays?

Thanks.

L.

GMS

When was the CCJ issued? If less than 30 days pay it and it will not appear on the record.

kingstreet

The loan to value will determine what product you're offered, but when you stay with your existing lender, they normally take the LTV from when you took out the last mortgage, rather than do a revalution.

Halifax uses a desktop valuation system called HomeTrack to calculate your LTV for a Product Transfer, but not all lenders go to the expense of this.

LTV, credit history and income multiples normally only apply to new mortgages and remortgages to another lender. In those circumstances, four times gross annual income, less any credit commitments would be about normal

Lodge

kingstreet wrote: »

LTV, credit history and income multiples normally only apply to new mortgages and remortgages to another lender. In those circumstances, four times gross annual income, less any credit commitments would be about normal

So, what would be the criteria for borrowing more from the same lender?

kingstreet

Lodge wrote: »

So, what would be the criteria for borrowing more from the same lender?

Treated like a new mortgage, so all the usual checks as SPM alluded to earlier. It's only transferring to a new product for the same amount of borrowing that gets your income and credit status ignored.