re-mortgage

want2bmortgage3

Hi everyone,
I have a repayment mortgage with NRAM @ 4.89% on £100,000.
Property has been valued at £150,000 as I am trying to sell.
Looks like I may not recieve an acceptable offer so could keep property and re-mortgage instead.
Income is around £20,000 and I have one credit card with debt of £4500.
One mortgage broker advised me to clear the credit card first but this could take a while.
I don't see why I can't get a re-mortgage as I am paying the card repayments as well as the mortgage which will be less at a lower rate.
So I want a lower rate asap on the mortgage, any ideas anyone? Can I compare and apply myself? I have over 25% equity.
Thanks for any advice.

_Andy_

At 5x income you are going to be severely limited with potential lenders. Possibly 1-2 will offer that kind of multiple

want2bmortgage3

so its all about the income then, the equity doesn't matter?

what about if i rent out the property, would i be looking at different mortgage products and lending criteria?

opinions4u

want2bmortgage3 wrote: »

so its all about the income then, the equity doesn't matter?

Both matter.

what about if i rent out the property, would i be looking at different mortgage products and lending criteria?

Completely different ball game.

Caz3121

want2bmortgage3 wrote: »

so its all about the income then, the equity doesn't matter?

what about if i rent out the property, would i be looking at different mortgage products and lending criteria?

Income will dictate the amount you can borrow, equity/LTV will dictate how good a deal you get - lower the LTV, lower the interest rate

If you rent the property simplistically LTV should be 80% max which you appear to be fine (although an estate agent valuation will be different to a surveyor valuation
Rental income should be around 120%+ of the mortgage interest payment
Interest rate will be higher than a residential mortgage

want2bmortgage3

thanks for clearing that up. seeing as my income is not quite ideal, could i get a buy to let type mortgage but live there myself, knowing i can afford the repayment. so long as the new rate is better than the current 4.79!

Yorkie1

want2bmortgage3 wrote: »

thanks for clearing that up. seeing as my income is not quite ideal, could i get a buy to let type mortgage but live there myself, knowing i can afford the repayment. so long as the new rate is better than the current 4.79!

I very much doubt it. You're applying for the product on the basis of certain conditions, and living there from the outset is not one of those - and could even be construed as fraud.

_Andy_

want2bmortgage3 wrote: »

thanks for clearing that up. seeing as my income is not quite ideal, could i get a buy to let type mortgage but live there myself, knowing i can afford the repayment. so long as the new rate is better than the current 4.79!

No, that would be fraud. Not a good idea.

want2bmortgage3

so looks like my only option is to pay back the credit card. to be honest its money i loaned to a friend and hes paying me back 160 a month but this will take over 2 years so thats no good to me now. i am going to have to use my own income to pay this card off asap. doesn't make sense that i can afford a mortgage @ 4.89 in my current situation but they wont let me re negotiate a better deal until i have absolutely no debts apart from the mortgage.

_Andy_

Its the salary multiple that's the issue more than the credit card, I would imagine.
Like I said, 5 x income really limits your possible lenders

want2bmortgage3

so I'm not really in a great position am I, I am borrowing more than I should?