Remortgage impossible or possible?

outta_the_tunnel

Hiya - I've just got involved on MSE have used the site to transform my financial position over the last 3 years. Currently working on reducing final bit of credit card debt before concentrating on the large mortgage and perhaps a mortgage free journey!

So I'm wondering if anyone can give me some pointers for a possible remortgage early next year. Issues outlined below, with any advice greatly appreciated.

Current mortgage is £182,000 with a likely valuation on property of circa £225,000 to £230,000. Mortgage is fixed rate 5.49% until Jan12 with NR and I will need to let that run its course until then due to large redemption penalties.

Income is just shy of £40k per annum with extra £4,500 car allowance (not sure if that bit can get classed as income). In terms of outgoings I just have some credit card debt, but this should be minimal by the time I start any remortgage application. I do make £360 child support payments via bank transfer which I believe will impact affordability with some lenders (it is not through the CSA although was assessed by them)?

Mortgage is currently on interest only, but make an overpayment of £60 per month. I'm obviously keen to get back to repayment and secure lower interest rates in the short term without too much of an increase in my monthly mortgage payment obligations as budget is tight.

So the question I guess is, have I got any chance of remortgaging based on the income/obligations and likley LTV? I have used a few online calculators but seem to be coming up short on what they will lend. In the short term I can obviously revert to variable once fixed expires in Jan which will reduce payments in the short term I guess, but I would really like to remove any uncertainty by fixing a lower rate for 2/3 years if possible.

Any advice greatly appreciated

AskMeAnother

As a general guide based on those numbers - I think there will be several lenders, including some of the big guys, willing to consider your remortgage business.

All of them likely to be able to beat the NR SVR that you will go on to (currently 4.79% i believe)

mij544

Hi,

All seems very reasonable to me, I have helped clients in worse financial shape than this, and 80% LTV is freely available.

If you want a realistic calculator, there is a very good one on the Abbey for intermediaries site, under calculators.

This site is only for intermediaries use, however anyone who searches for it can use it as it isn't password protected.

Hope this helps,

Mike

Thrugelmir

Highly possible that a new lender will ask to see evidence of a repayment vehicle or expect you to switch to a full repayment mortgage.

As money allows. You need to increase your monthly "overpayments" to reduce the capital balance owed. £60 per month is barely scratching the surface of your mortgage debt.

outta_the_tunnel

mij544 wrote: »

Hi,

All seems very reasonable to me, I have helped clients in worse financial shape than this, and 80% LTV is freely available.

If you want a realistic calculator, there is a very good one on the Abbey for intermediaries site, under calculators.

This site is only for intermediaries use, however anyone who searches for it can use it as it isn't password protected.

Hope this helps,

Mike

Many thanks for the information I will take a look. I was concerned that the income and child support obligations would prohibit me reaching the required loan amount!

AskMeAnother

Someone like Abbey for example do not look at your bank statements. As your child support payments are made as an amicable agreement there is no requirement to disclose them.

Obviously you should satisfy yourself with affordability etc before commiting to anything if you have not declared your voluntary payments in the affordablilty calculator.

mij544

No Problem, happy to help.

outta_the_tunnel

Thrugelmir wrote: »

Highly possible that a new lender will ask to see evidence of a repayment vehicle or expect you to switch to a full repayment mortgage.

As money allows. You need to increase your monthly "overpayments" to reduce the capital balance owed. £60 per month is barely scratching the surface of your mortgage debt.

Thanks for responding.

Overpayment is the bit I'm trying to focus on, been steadying the ship for last couple of yours after nearly wiping out! I'm happy to move back to repayment when I remortgage and that will be one of the incentives for doing so. Brought it down from £191,000 over last three years with one-off payments.

outta_the_tunnel

AskMeAnother wrote: »

Someone like Abbey for example do not look at your bank statements. As your child support payments are made as an amicable agreement there is no requirement to disclose them.

Obviously you should satisfy yourself with affordability etc before commiting to anything if you have not declared your voluntary payments in the affordablilty calculator.

Thanks for the responses, sounds encouraging on the child support front. As you say affordability needs to be a major factor but hopefully it will be win win if I can secure a new deal as it will allow me to revert to repayment and fix the rate again so I know where I stand.

Appreciate the comments.