catch 22 need a remortgage but cant

want2bmortgage3

hi all
i am currently on a 4.79% mortgage equating to £650/month.
i have found out i could fix on 2.99% at around £500/month.
however, due to the mortgage being 5x my income i would have to have no other debts.
the problem is i have a credit card with over £4k balance.
so, despite being able to pay the current mortgage and credit card repayments, i am unable to apply for a re-mortgage!
any ideas what i can do?

dimbo61

Save up and clear the CC debt asap then apply for the fix
But is it only for 2 years? and are you on the SVR if paying 4.79%
Whats the LTV of the property?
Whats the follow on rate ? with current lender and if you moved lender ?
Exit fees and remortgage fees can cost you!

want2bmortgage3

hi dimbo
yeah there was 2/3 year fixed deals for the 2.99% and i think the 5 year fixed was a slightly higher %.
the ltv is around 66% of the property value.
it's currently on northern nram's SVR at 4.79.
so there is no exit fee and for a remortgage i could choose a deal with no initial fee, those would be added onto the balance.
cheers

Thrugelmir

want2bmortgage3 wrote: »

so, despite being able to pay the current mortgage and credit card repayments, i am unable to apply for a re-mortgage!
any ideas what i can do?

Suggest you pay a visit to the Debt Free Wannabe board. As up to you how you tackle this, i.e. short term pain for long term gain.

Hibees

I am in a similiar but worse situation, My mortgage is with NRAM, i owe 112000 on mortgage and 12k on secured loan, house value would be around 140k,

We changed to interest only with NRAM 2 years ago as my wife was taking up a nursing degree course, They initially gave us a 12 month interst only deal and then done the same last year, Now we are at the end of that deal and our mortgage is reverting to repayment at 1100 per month (from 710 Interest only), I am hoping to remortgage with another lender but dont hold out much hope, as i have 12k on cards etc, ( my mortgage term is 15y and 8 m)

They (NRAM) will not renew our interest only even for just 6 months, Its madness that we can afford to move mortgage and it would actually benefit the situation with cheaper repayments and more money to pay towards debt.

absolute nightmare !!!

want2bmortgage3

well an update for anyone interested, cleared all credit cards, loaned 2k off a friend to help with that.
now i'm ready to re-mortgage, only stumbling block is ideally i need a buy to let mortgage as i have tenants in the property who are staying now indefinitely. is there a way round this? do any residential mortgages allow tenants there or can i just not declare it?

GMS

want2bmortgage3 wrote: »

well an update for anyone interested, cleared all credit cards, loaned 2k off a friend to help with that.
now i'm ready to re-mortgage, only stumbling block is ideally i need a buy to let mortgage as i have tenants in the property who are staying now indefinitely. is there a way round this? do any residential mortgages allow tenants there or can i just not declare it?

Not declaring tenants would be fraudulent. Do not do it. No residential mortgage will allow tenants on completion.

What is the property value? How much mortgage do you need? Monthly rent? What is your annual income?

want2bmortgage3

Hi GMS
To answer your questions:
property value - agent valued at £150k, realisticly I'd say £140k
mortgage I need is £99-100k
Rent income is about £790 a month.
My income is £18900 basic.
Look forward to your advice

GMS

LTV would fit for a Buy to Let mortgage. Your income will exclude many lenders though as it is below 25k.

Best thing to do is speak to a broker.

Do you have Consent to Let from NRAM? If so when does it expire?

kingstreet

The two year fixed rates available to you for a 71% LTV advance, from a potential lender like The Mortgage Works, are all higher than the rate you are currently paying.

They range from 4.84% to 4.99% and the arrangement fees range from 3.5% for the lowest rate to 2.5% for the highest.

So, paying £2,500 or £3,500 fee to get a rate worse than that you already have looks like a fairly obvious AVOID.

want2bmortgage3

Thats interesting, so maybe as with other decisions I have asked about, I am better off leaving things as they are! I did have consent to let with NRAM but I cant remember whether it expires or not, I will have to call them and find out.
I am slightly concerned with leaving the mortgage alone in case the rate goes up.
Thanks for the help