Mortgage Renewal - a little help please?

magicmat

Hi there. A quick run down of my situation. I am currently working part time earning £27,000 a year. I have my own company, but currently am not paying myself. In 1 months time I will be leaving my job to concentrate on my company, and will be paying myself around £35-£40k.

My house is worth £275,000, my mortage is £120,000, and I currently (over-pay) around £870 per month. My 2 year tracker comes to an end in a month with RBS. I have 16 years left on my term. As i understand it, RBS do not re-evaluate your financial situation generally when starting a new deal, especially with such a healthy position including history of overpayments. I like the look of HSBC's no fee lifetime tracker, @ 2.39%. However, based on my current standard income and their standard rules, I would only get £107,000. I do rent out a room in my home, which gives me an additional income of £5700, which means i could borrow £134,000. Can you include rental income on applications? In which case, is this my best bet? HSBC's deal is slightly better than RBS's, and its also lifetime, which sounds good to me, with no tie-ins, allows over payment etc.

Does anyone have any other recommendations based on the situation above? I have previously used a broker, but dont really want to pay fee's when I think I have a "fairly" good grasp of what to do, and what is out there....and when I have an army of MSE experts available! :T

Many thanks in advance!

kingstreet

magicmat wrote: »

Can you include rental income on applications?

No. You can't. You're unlikely to be able to remortgage in the near future. You'll be treated as self-employed and most lenders require a minimum of two years accounts.

I suggest you see what customer retention products your current lender has for borrowers in your position.

magicmat

kingstreet wrote: »

No. You can't. You're unlikely to be able to remortgage in the near future. You'll be treated as self-employed and most lenders require a minimum of two years accounts.

I suggest you see what customer retention products your current lender has for borrowers in your position.

Well, thats a bit lame isn't it! Its clearly a healthy income. Oh for the days of self cert!!

Thats why im applying now, whilst my financial position is (in the lenders eyes) more healthy. Any other suggestions of routes I could try?

Thanks

opinions4u

Oh for the days of self cert!!

You really think "lie to buy" mortgages are a good idea these days?

magicmat

kingstreet wrote: »

You'll be treated as self-employed and most lenders require a minimum of two years accounts.

Oh, and I hve plenty of accounts, the company has been going for a few years...but I havent drawn a salary, and the turnover isnt huge.

magicmat

opinions4u wrote: »

You really think "lie to buy" mortgages are a good idea these days?

As the exact situation above shows, mortgages don't ALWAYS base their information on the most useful information! Yes, sadly open to misuse, but thats a whole other issue.

I started with self cert (only way I could ever get on the ladder)...got a great mortgage, have never had any issues, in fact ive only ever overpaid, and am now in a fortunate position. But yes, I know not everyones stories are as happy.

kingstreet

Allow me to amend;-

most lenders require a minimum of two years accounts showing adequate income to service the mortgage and the applicant's usual expenses and other credit commitments.

Apologies.