need 2 remortgage but not sure where/how!

grandpher

We took a 5 year fixed out (expired) when my husband was in a perm job.
We want to remortgage to include credit card debt. We currently pay out 680 a month on them + our mortgage and we owe 51k on our house. We want 2 remortgage for 70k-our house is now worth around 145k. The trouble is my husband now has his own company (less than a year) and we only bring in about 1100 a month joint income. We could afford the mortgage repayments especially if we didn't have the cards to pay every month but because he's not in a perm job not many high st people wanna know.
Do we need a self cert mortgage or is there another alternative?
many thanks for any help.

simonjfisher

There are some options available to you. Some lenders work out things on a affordability basis and may be able to lend you enough. Alternatively as your husband is self employed you could go for a mortgage (maybe self certification but not necessarily) using a projection for your husbands business & income for the next financial year.Whichever way you go speak to an independent mortgage broker before proceeding.

Joe_Bloggs

Read Martin's Problem debt article here:- http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094132767,59163,
Remortgaging is a factor in his advice amongst many other practical techniques Unfortunately those credit card bills are an affordability mortgage killer. One of you is going to have to get a job that can pay the bills.

A remortgage with another lender may involve redemption fees, at worst their legal costs. You can get a redeption fee quote from them.You may have to pay legal fees of the new lender, sometimes survey fees. Many lenders lump all costs together in one payment and say every thing else is free.

Stay put to avoid a detailed examination of your finances. You should scrutinise your accaounts as to where the debt built up and make sure it is not a permanent feature of your finances. Hopefully you can improve your situation and you can remortgage when your finances are under control and can get competetive rates on your borrowing.

J_B. (Fortunately I am not a financial advisor and can comment freely as I see things.I can also give out dubious advice).

simonjfisher

A lot of lenders will pay for all the fees if you remortgage. I'm not sure what the other poster means when he says get a redemption fee quote. I think he's getting early repayment charges confused with arrangement fees.

payless

simonjfisher wrote:

A lot of lenders will pay for all the fees if you remortgage. I'm not sure what the other poster means when he says get a redemption fee quote. I think he's getting early repayment charges confused with arrangement fees.

In fact its very rare for a lender to pay all the fees involved in remortgaging-Even with those lenders that provide a free valuation, free legals and no arrangement fee , you are usually required to pay your existing lender an account closing fee ( sometimes called a sealing fee),

hairy_cornflake_2

Talk to an independent mortgage broker. He/She can quickly answer all your questions and advise you on the right sort of mortgage for your circumstances.

They will also discuss what fees are payable (if any) now and in the future.

Best of luck

grandpher

many thanks folks, for all your good advice but it looks like its been sorted. We spoke to an independant mortgage blokey!
We had a 5 year fixed endowment mortgage with a 2 year tie in (that we knew nothing about!!)and needed to get out of it! there were no penalties as we had done the time. We've remortgaged, included the card debts and we'll be paying over £500 per month less. We've purposely got a mortgage where we can throw extra money into it so to shorten the life on it and the cards have already been cut up-yippee!!
many thanks again.
mr n mrs grandpher!

Joe_Bloggs

@simonjfisher
Sorry, I was misleading as I was bluring existing lender costs and new lender costs together and confusing matters.
See page 17 of the L&C guide to remortgaging re redeption quote:-
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1106239308,24268,
I got my redeption quote so I know how much my mortgage lender will charge to sever links. It was not obvious which charges were applicable in my circumstances, so I asked. The answer was £140 plus daily interest on the capital @6% per annum after a scheduled mortgage payment. I have no tie in period but it still will cost to change as payless mentioned.
@grandpher
Congratulations! Your previous deal sounds an interesting method of financing a house. How does it compare to your new deal in terms and conditions?
J_B.

grandpher

new deal much better.Old one was with Halifax who we have had no problems with at all. I think the financial guy we saw at the time was a bit 'economical with the truth' shall we say!!
He never told us about the 2 year tie in and sold us an endowment mortgage that we reckon he probably had suspicions was not the best deal for the future but kept quiet-but anyway it doesn't matter now.
Its a 25 year 1 @5.4% with a discounted first 2 years. Its also self cert. Its with Gmac? never heard of them personally.We have the option of throwing extra money into it each month which suits us as we have no intention of having it for 25 years anyway.
We'll probably remortgage after 2 years when the discounted period finishes. Its such a relief to know its all sorted. Will never take an endowment out again!!
Thanks again folks for all your advice.