Mortgage

pamela2

Hi all
I have a mortgage with the woolwich which i now owe £6,000 on and 5 years left to pay, The problem i am having is i want to re mortgage, i need £10,000 to repair and improve my property but have been refused by my current lender who i have always been with because i work for myself and last year had earned £8,000. From april i have worked full time and will continue to do so. There is only my income coming into the property due to my partner dying 2 years ago, I find it really frustrating as my buisness is doing well and did not want to get a loan but may have to try this root even though my mortgage advisor said i would be better waiting and going back to them next april My property is worth about £90,000. I have not looked anywhere else as feel a bit defeated as this is the second time i have asked them for them to say no, I have no other debt and i am a healthy 54 yr old. Any advice would be very much appreciated. Thank you. pam

kingstreet

i work for myself

How long have you been self-employed?

last year had earned £8,000

Turnover? Net profit?

From april i have worked full time

Does this indicate you expect your income to be higher for the current tax year and onward?

Wh05apk

Years ago lenders would do this almost like "pawn-broking" on the basis you had loads of equity in the property and their money is safe, but now they have to show affordability regardless, with Woolwich assuming you are single with no dependents you need to have £551 a month to live on after the mortgage and commitments, which if you are earning £8,000 (assuming thats your net figure) means it is unaffordable in their eyes.

I think you only hope might be that if you bank with Barclays depending on your account conduct you may have a PAML (pre approved mortgage limit) which may be high enough to permit the increase, speak to you broker if this is the case.

kingstreet

Wh05apk wrote: »

if you bank with Barclays depending on your account conduct you may have a PAML (pre approved mortgage limit) which may be high enough to permit the increase, speak to you broker if this is the case.

I suspect her "advisor" is in-house as she's been declined twice. I can't see an external broker approaching the same lender after one decline?

Wh05apk

kingstreet wrote: »

I suspect her "advisor" is in-house as she's been declined twice. I can't see an external broker approaching the same lender after one decline?

Even more reason to go back then, as they have probably not even bothered to check PAML. probably more interested in trying to cross-sell a credit card, or buikdings and contents.

pamela2

Hi yes £8000 is my net income for 2010/2011 and expect around £10,000/£11,000 for 2011/2012 and i have been self employed for 16months. when i went to thein house advisor for barclays she did tell me that i would need £551 to live on after mortgage and council tax. I think i will just have to wait untill next april and try again, i just wondered if it was worth asking else where or maybe get a smaller loan. Thank you for your replys its appreciated. pam

Wh05apk

Pam, do you bank with Barclays? if so go back and ask the "advisor" if you have a PAML limit.

pamela2

Thank you for your help i will go to barclays and ask them. pam