income droped will we be able to remortgage?

Bella79

Hi all,

A little advice please, we brought our home 3 ys ago for £210,000 our morg is for £140,000, the fixed deal we have comes to end in april with woolwich, however in the last 3 years my oh income has dropped by more than half to only 12,000 pa, my income is £5000 pa.

We still manange the payments ok and its due to drop if inreast rates remain the same from £630.00pm to £450.00m.

I want to know can we get another fixed deal? or will juts have to stay on whatever the deal is at the end of the fixed term?

Thankyou

ACG

As for your actual question though, no you will not be able to remortgage. You would need to be on a combined income of around £35k if not more.

If you can afford it, it could be worthwhile keeping your payments at £650 per month. When interest rates do rise you might start to struggle, so overpaying now will give you an extra buffer later down the line. Just a thought though.

Thrugelmir

If you remain with your current lender, then you are not remortgaging. Your options are to either drop onto the variable rate or opt for another product. Although the product may have criteria such as a % LTV. There is no formal application or credit check.

Bella79

Thankyou for your quick replies, we do intend to move, as our incomes have changed so much and we need to downsize this house is too large for us, but as nothing is selling at the moment, and the few houses that have sold the same as ours have had to take silly offers, and we can not afford to lose that much,we could continue paying the £650 and hopefully when we di eventually sell there will be more capital to take onto next home

Thrugelmir

Bella79 wrote: »

,we could continue paying the £650 and hopefully when we di eventually sell there will be more capital to take onto next home

A sensible idea. Speeding up repayment does make a difference.

opinions4u

You don't want a new fix if you're considering downsizing.

You don't want any mortgage that has an early repayment charge (ERC) as this could prove massively expensive to get out of / remove when you move.

What is the standard rate you are going to move on to? Doing nothing and overpaying (or, if the SVR is low, saving in a decent account) will almost certainly be your best option.

ACG

Maybe see if you can move your mortgage with you to a new property, just decreasing the amount owed.

Wh05apk

Woolwich tend to have quite low follow on rates if the deal was taken a while ago, you could find you are now something like base + 1%, if so do not even consider changing to another deal.