Re-mortgage help - pretty please? In a pickle

R2k6

I’m in a pickle and no mistake – any advice would be a godsend!

Took out a joint 25yr C&G mortgage 10 yrs ago interest only. Just come to the end of second 5 year deal, so payments will increase from £669 to SVR £770.

Original borrowing was £80,000 to be paid by NDS Administration Synergy plans (ISA/PEP) We’ve been paying £146pm and the current value is approx £16,000. They are unlikely to pay out anywhere near £80,000. The plan includes life cover for the £80,000

It gets worse. Over the years we have added borrowing to the mortgage, interest only, without making any additional provision for eventual repayment.

Outstanding mortgage now stands at £125,327
House worth approx £290,000.

We wish to raise an additional £20,000 or so at this time.
I am 54, my wife is 44.

So time to re-organise!

My thinking (and please correct me!) so far is to:

Cash in the ISA/PEP plans and use the £16,000 as part of the £20,000 we’d like.
Raise the other £6000 on the mortgage.

Re-mortgage or re-negotiate with C&G, a longer term (25 years) repayment mortgage, fixed rate for 5 years or more, in the sum of £132,000 (including the £6,000).

C&G will not include the additional £6,000 in the fixed rate (5.49% for 5 years) wanting the SVR of 7.25% instead. (This is the case on additional sums under £25,000 apparently.)
C&G will only allow me a 20 year mortgage because of my age. How depressing! Is this standard practice now?

Can they be pushed, persuaded or bullied?

It seems there are better fixed rates for longer than 5 years elsewhere anyway.

I’m employed, but I own 50 percent of the Company’s shares, have income of around £40,000, much of which is paid as Dividends for taxation purposes. So proof of income may be an issue but I dare say the accountants can provide whatever paperwork might be needed.

But I really don’t know which way to turn and can’t see wood for trees right now!
Am I actually heading down the right path? This stuff is not my forte….

firesidemaid

hello

i am no expert, so am not offering advice - but i am sure others will help you.

i would like to say that it is good that you are tackling these issues now and have started to think about them.

have your isa/pep providers issued you with warnings re: not reaching your targets previously?

do not be afraid to move away from c+g, or at least let them know you are thinking about it and ask what are their best remortgage deals available to you.

i wish you both well.

Rick62

C & G are a good lender and have some great rates current, BUT do not offer these to existing lenders.

You have a number of issues, such as why you need to keep increasing the mortgage rather than reducing it and your desire to have it for more than 20 years when you are 54 (taking it past 74yrs old).

You should be able to get a decent mortgage with your business earnings and equity. I would particularly recommend speaking to a broker, as you need someone who knows the lenders criterior and will accept your business earnings and can present your finances in a positive way. Also it would not hurt to review your medium/long term financial plans.