Remortgaging dead end

belladonna2

Hi all

I have a mortgage with Northern Rock for £138,000. The property is valued at around £250,000. My salary is £30, 247 and I have come to the end of a favourable rate of 3.89% with them and am now shopping around. I seem to be very limited due to the income multiples.

I know Northern Rock were generous when I took over as sole borrower but wonder if anyone knows of another lender that might consider my application. The increase in my monthly payments is around £120 and I am obviously keen to reduce this. The rate being offered by Norther Rock is 5.49% fixed for 2 years. I have been advised that I may just have to put up with this until my salary increases and I can shop around more.

Any advice from helpful readers on remortgaging my property would be greatly appreciated

Thanks in anticipation Belladonna2

herbiesjp

There may well be a few lenders based on affordability that could look at this for you. There may also be some lenders that may consider outside of normal criteria.

somemortgageanswers

belladonna - speak to an independent mortgage broker - herbiesjp is correct - but there are other ways around this problem ....

belladonna2

My broker was only able to give me quick telephone eadice before going away but felt I might need to wait until my salary has increased in a couple of years. I believe another alternative is to self certify my earnings but not particularly comfortable with this one.

Thanks for replying

simonjfisher

As previously stated by other posters there are lenders that may consider lending to you on an affordability without having to self certify your income but you would need to apply for an agreement in principle from them to be certain. A lot of these types of lenders don't publicise their exact lending multiples so an AIP is the only way to find out.

GoFigure

You could also ask the Northern Rock if they can give you a 'loyalty deal'. Rather than lose you many lenders are prepared to give you another product once your existing deal has ended, but often only if you ask them.
The advantage in your case would be that they are already happy with you as a customer and won't need to re-assess your loan (as would be the case for a new lender).
Most lenders give you a choice of products, often at the expense of a one-off fee - but this can usually be done quickly and without the 'hassle-factor' of remortgaging.
Ring Northern Rock and ask for their Customer Retention Unit, you might find this is as attractive as moving your loan, especially if you are finding a limited marketplace for your current circumstances.

belladonna2

Thanks. Will give them a call.

belladonna2

Thanks. Will look into this as well.