remortgage advice please

missdeedee

Hello all,
This is my first post:j . I wonder if anyone can help. I currently own a property and have a mortgage of £150k and a secured loan of £23k which is costing me £900 in monthly payments and I really need to reduce my outgoings. The property itself is worth £195K so I have £22k equity in it. I am thinking of combining the two loans with a lower interest rate and but my income has dropped substancially since I brought my property. I have never missed any payments and my credit score is excellent but I am unsure if lenders would assess the remortgage application based on my current salary or affordability. The maximum mortgage I would take out is £175k to lower my outgoings so there would still be quite a bit of equity left in the property. Would be very helpful if anyone could advise
Thanks,

MissDeeDee

herbiesjp

What is your income?

Do you have any other dents?

missdeedee

income is £26k, credit card debt, totally £4k ish, but no other dents.

Thanks,

Miss Deedee

herbiesjp

I would think your chances of getting this agreed would be very slim - that is 6.7 times your income (without any deductions for the credit card debt).

Doing what you are looking to do could improve your affordability, as you are not looking to borrow more, but it will be difficult

I would suggest having a word with a fee free whole of market mortgage adviser to see if they can help you - either with your current lender or with a different lender

Scorpio21_2

Hi missdeedee,

What "herbiesjp" says is correct and most lenders would respond with a flat no no. I was in a similar position last year when I bought my new home and after many many conversations with my mortgage lenders I was successful in getting a high mortgage. I went with Barclay's - they were the only lenders (and I approached at least 6 others) who agreed to my "mortgage in principal". Problems did start to unfold at the final stages though but this was mainly because I had to pay the asking price for my house whereas I had anticipated £5k less.

So how did I win my case.....I put together a couple of cash-flow statements;

One which showed my current position including all credit card debts, loan debt, obligatory household bills (rates and utilities) and one which showed a much bigger mortgage but with the loan and credit card debt consolidated out. It was obvious my financial outlay would be less even though the mortgage was higher and so they agreed.

Other factors that may have gone in my favour....I was only asking for a 60% mortgage and my employment status is extremely secure.

Obviously each lender has different criteria but you may as well attempt to prove your capability to pay the monthly mortgage....if they've already said no without the proof then you have nothing to lose by putting your case forward.

Good luck !

missdeedee

Thanks for the responses - much appreciated. I will contact a fee free whole of market mortgage adviser and get some further advice.

Thanks once again,

Missdeedee