Preparing finances before marriage

DOUGIESGIRL

Hi I'm new here and starting the year facing up to financial responsibilities.

I live in Scotland and I'm getting married this year. I have a £77,000 mortgage on my house which is currently valued at £130,000. My mortgage is up for renewal and because I now work part-time I only earn £17,000. I earned £35,000 3 years ago. My partner earns £30,000 and owns the family house that his mother lives in and has life rent there.

We would like to borrow money to make improvements on my house like new windows and doors and ideally I would like an extension to the house.

Am I best to keep the house in my name and go for a home improvement loan over a shorter term?

I will have to tell the Halifax that I'm getting married but might be persuaded to get a joint mortgage because my future husband will be the main earner.

I will work full-time again in the summer so my earnings will increase.

I have £4000 on my credit card and my FH has £2500, other than that no debt.

My credit rating is 'fair' and his is excellent.

Any advice greatly appreciated. Love this site! :A

MRG

Hi Dougiesgirl,

Maybe approach Halifax to ask for the possibility of a remortgage deal with extra money raised? They will assess it on affordability and your current amount owed is on the 4.5 X Salary cusp. See what they offer.

Im guessing you are looking for quite a substantial loan to complete your home improvements?

If your looking to keep the mortgage just in your name you may have to wait until you are earning more in the summer before remortgaging.

If you decide to do a joint mortgage, your husbands income and yours will allow you to borrow alot more.

DOUGIESGIRL

Thanks MRG
We would probably need £15,000 for the improvements and longer-term, the ideal would be an extension but not if we can't afford it. I'll talk to the Halifax and see what they say.

MRG

If Halifax can't help there are lenders that will look at over 5 times your salary if you look to remortgage.

catieeb06

MRG wrote: »

If Halifax can't help there are lenders that will look at over 5 times your salary if you look to remortgage.

Who?

I certainly don't know of anyone except Igroup and I don't even think they do more than 4x anymore.

MRG

I got one agreed @ just over 5.5 x salary last week.

I don't want to shout the names out as it may be different in Scotland.

Caiteeb06 - Most lenders do 4.5 x Salary (the borrowing calculator on your website says at least 4.5 )

dimbo61

You are doing alot already this year with getting married and " preparing finances before marriage"
What does your current deal revert to at the end of the Fix? is it the SVR of 3.5% Halifax has?
With you only working part time I would wait until back in work full time and married ( think of ALL the forms you will have to change MRS XXX)
Try and clear the CC debt and dont go mad on the wedding.
Does your partner have a mortgage on the family home ?