Remortgage help, High LTV

les72

Hi,

I looking for a remortgage for around £138,000.

Current house is around £145,000

Credit rating for both me and my wife is 'excellent' (Experian words). I have an Experian (Credit expert) file that can be viewed. No defaults, no CCJ's. No late payments.
But from 2006 our old mortgage shows a few late payments, this mortgage was fully paid off in 2006. These late payments are due to fall off our credit file this year (6 years).

My wife and I are both company directors for our own company. Our salary’s are £6,000 each (total £12,000). We also take company dividends of around £28,000 to bump our earnings up to £40,000.

The above figures can be proved by company accounts over the past 3 years.

Can I get a remortgage?
Where would I start the search?

Can’t go the current lender because they don’t do new mortgages anymore!

GMS

No remortgage available with those figures. Shade over 95% Loan to Value is not going to happen.

Why do you need to change? What rate are you paying now?

les72

Thanks for your reply.

The current mortgage is interest only and would like to have a repayment mortgage.

So what LTV are we looking at than for remortgage?

Setting that aside, If I rent the house out and buy another house, could I get a new mortgage with a LTV of 95%?

New mortgage would be around £170,000 - £180,000?

Thrugelmir

You won't need to remortgage if you take a product from your current lender. Switch to a repayment mortgage in the process. Then you can start to build equity that will help you move up the ladder at a later date.

les72

Can’t go to current lender because they don’t do new mortgages anymore!

GMS

What rate are you on now? Will they let you chnage to repayment? Could you overpay to reduce balance?

Would the rent on the property be sufficient to cover the mortgage of you chose to let it? Remember the associated costs such as letting fees, landlord's insurance, gas certificates etc plus repairs/maintenance.

I can't see how this will work. If you remortgaged it would not be possible to let it out straight away, usually minimum 6 months before consent to let is considered. No Buy to Let mortgages available at your LTV.

Can you get consent to let from current lender?

A new purchase at 95% is very difficult but with the added complication of a 95% mortgage in the background it will be almost impossible. Your income of 40k joint would mean a 4.5 x income multiple which is unlikely at 95% LTV.

Not something I would be confident of doing if somebody walked into my office with the scenario.

les72

Hi,

Just telephoned my lender (SPML now Acenden mortgage service). No new loans from them, so can't change to repayment mortgage.

I can payback the capital at anytime (over-payments), minimum £2000 plus £65 admin charge everytime I do it. So that's an option.

Can I get a new mortgage at 95% LTV at the moment?

_Andy_

I think your lender has mis-informed you. There doesn't need to be any new loans available if all you are doing is switching from IO to repayment.

les72

Thanks for the tip.
Just telephoned them again and I can't switch to repayment. They are only offer me part capital reduction.