Remortgage help

EleanorRig

I have been receiving support with my interest mortgage payments whilst I was in receipt of benefits. I now work full time but I am on a low wage and cannot afford the full monthly repayments. My bank won't agree to an interest only mortgage and I wanted to know how I go about remortgaging with another lender who will accept an interest only mortgage.
My outstanding amount is £65,000

opinions4u

How would you ever repay it? How would you afford an interesst rate rise?

A couple of other questions:

1) How old are you?
2) How much do you earn?
3) How much is the property worth?
4) Have you missed any payments on any credit or paid anything late in the last six years?
5) What other credit commitments do you have - size of debt and monthly payments?
6) What rate do you currently pay?

While the answer to your question is "see a mortgage broker" other alternatives could be extending the term with your existing lender or selling up and renting.

www.makesenseofcards has a statement of affairs (SOA) form on it. Complete one fully and post it back here. As suggested in the post below, people can then assist with finding ways to prioritise your mortgage.

tattycath

Maybe if you post your SOA suggestions could be made as to how you can cut back in other areas so the mortgage payments can be met.

EleanorRig

Answers:

I'm 44 (but my ex is 50 and it's a joint mortgage - before you ask he hasn't contributed since our split 10 years ago)
I earn £9876 (before tax)
Property worth about £250,000 (so a lot of equity)
My credit rating is perfect
Usual outgoings, plus two children (13 and 16 both in full time education)

I really don't want to sell, this is why I am asking about remortaging

kingstreet

We need to know about other income.

Tax credits? Maintenance with court order? Child benefit?

Thrugelmir

EleanorRig wrote: »

I really don't want to sell, this is why I am asking about remortaging

While not your preferred option. With the available equity. Seems the most appropriate option for you.

As even a £65,000 mortgage on interest only terms, would appear unaffordable if rates were to rise in the future.

EleanorRig

kingstreet wrote: »

We need to know about other income.

Tax credits? Maintenance with court order? Child benefit?

WTC - £65 pw
CTC - 108 pw
CB - £33
no maintenance

Thrugelmir

EleanorRig wrote: »

no maintenance

The obvious question is then why none is/has been paid?

kingstreet

You will need to ensure you can remove your former partner when you remortgage. Is he likely to agree to a transfer of equity to enable you to remortgage in your sole name?

Selling appears to be the only sensible alternative if he won't agree.

Wh05apk

With that amount of equity some lenders will accept interest only with "sale of property/downsizing" as a repayment vehicle, income wise, with tax credits etc you are just about earning enough for a lender like Abbey.

EleanorRig

Thrugelmir wrote: »

The obvious question is then why none is/has been paid?

Because my ex has managed to evade maintenance by claiming he can't afford it as he is self employed. CSA have never pursued this