Help and advice needed for remortgaging

Lastchance2

Hi, I am looking for some help, guidance and hopefully a glimmer of hope! We have just come to the end of a 5yr fixed term self cert mortgage and approached Reeds Raines we went through all the paperwork and were turned down by Nationwide (I think it was) how do we go about getting another mortgage, we owe on the mortgage £112,243.89 and I would value the house at £210,000.00 but due to business not being brilliant (recession!!) we have accrued debts of £24,000.00 which we want to add onto the mortgage, this year I will earn £17325.00 per annum but my husbands 2010/11 income was only £6453.00 but we also get working tax and child tax credits of £499 per month, sorry to have been so long winded but I wanted to give the full picture, does anyone think we have a chance of getting remortgage? Many thanks.

dimbo61

First of all your mortgage is not with Reeds Rains and I doubt the Mortgage adviser is a " whole of market mortgage broker"
You need to look at the mortgage paperwork and find out what your mortgage reverts to at the end of the fix! ( please dont forget that the paperwork is now 5 years old!)
Does it say that the mortgage will revert to the SVR?
Who is your lender ?
Go onto there website and find out what is the Current SVR !
You have a good LTV but there are no self cert mortgages any more so you may have to stay with your existing lender.
But they may have deals available to existing customers.
So either speak of a "whole of market mortgage broker" or post details of your existing lender

Lastchance2

Hi, Thank you for your reply. The man at RR said he was a "whole of market" broker. The mortgage is with Accord and has reverted back to their SVR which is I think 5.99% and we have never defaulted on any payments either.

Dave_Ham

I would fancy I could have a chance at sorting this, but would depend upon right lender selection and also what this year has been like for OH income wise (since last tax year end)

You will get better than Accord SVR for sure, although credit score would need to be tip top...

Good luck

Lastchance2

Hi, Thank you for taking the time to reply. My husbands books for 2011/12 haven't been put in yet but I am sure that it will be up on the previous years but not sure how much. We have no CCJ's and have never defaulted on any payments, would it be worth approaching Accord as an existing customer to ask the question? I am a bit wary because of the credit checking?? Many thanks

Dave_Ham

Certainly it will not hurt asking the question...?

Good luck

GB350

I am in similar situation.. Stats slightly better than you have posted but turned down by 2 lenders so far on account of their "affordability criteria..." Seems it does'nt matter about equity anymore .... according to last one I spoke to .. they have big problems repossessing anyone these days. I am looking for a remortgage of 100k on a property valued at 236k but getting nowhere .... my other half has salary of 22k and my self employment average for last 3 yrs is 15k... debts of 6k combined... no skeletons in cupboard and blemish free credit records... Last lender I approached (YBS) could offer me the grand sum of 48k based on their affordability calculator.... They are probably one of the worst examples..... but you may well find, as i have, that you could end up stuck with your current lender until the prohibitive lending conditions being applied at the moment are relaxed and they realise that they are excluding too many borrowers from the market....

Thrugelmir

GB350 wrote: »

debts of 6k combined... no skeletons in cupboard and blemish free credit records...

Your unsecured debt will impact on any lending decision.

Tackle that, and doors may open for you.

GMS

GB350 wrote: »

I am in similar situation.. Stats slightly better than you have posted but turned down by 2 lenders so far on account of their "affordability criteria..." Seems it does'nt matter about equity anymore .... according to last one I spoke to .. they have big problems repossessing anyone these days. I am looking for a remortgage of 100k on a property valued at 236k but getting nowhere .... my other half has salary of 22k and my self employment average for last 3 yrs is 15k... debts of 6k combined... no skeletons in cupboard and blemish free credit records... Last lender I approached (YBS) could offer me the grand sum of 48k based on their affordability calculator.... They are probably one of the worst examples..... but you may well find, as i have, that you could end up stuck with your current lender until the prohibitive lending conditions being applied at the moment are relaxed and they realise that they are excluding too many borrowers from the market....

Do you have any children? What term were you looking for?

Euity wont pay the mortgage, income will. Lenders can not lend based on their ability to repossess and recover their loan. In your example a joint income of 37k minus 6k debts would mean 31k. 3.5 x income roughly to get to the required borrowing. However affordability used mostly now rather than income multiples.

YBS have strict criteria. You may well find a lender willing to advance the required amount. A broker may be of use to you.

GB350

Thrugelmir wrote: »

Your unsecured debt will impact on any lending decision.

Tackle that, and doors may open for you.

When The Halifax pay back the 8k+ that they owe us, we won't have any unsecured debt. Expecting a resolution to this within the next month..
Will this open doors for us..? Hopeful but doubtful... based on figures I've witnessed today...

Thrugelmir

GB350 wrote: »

When The Halifax pay back the 8k+ that they owe us, we won't have any unsecured debt. Expecting a resolution to this within the next month..
Will this open doors for us..? Hopeful but doubtful... based on figures I've witnessed today...

Banks are contracting lending. So they can choose their customers. All one can do is create the best profile possible in order to move higher up the pecking order.