Mortgage Questions and to wait or not

princessdon

Afternoon all

My question is whether to wait and stay on SVR on move to a new mortage.

Currently on Hfx SVR and wish to move to HSBC lifetime tracker (currently 2.79) fee free with no tie in. They have said they would accept us 3 mos ago but we decided to wait as OH hadn't been with his current employers for 6 mos and this was their preference. He's now been there the 6 mos BUT I am now at risk of redundancy (have formal letter) and the re-structure won't be known till approx 3 mos time. I am applying for jobs and have Income Protection in place.

Now we only wish to borrow 30% and the amount we wish to borrow is less than 1 X salary combined and just over 1 X OH alone.

Can I go ahead with our plans having my name on the mortage but no "income" added from me, do I apply giving details of my wage and the "at risk" or is it best in OH sole name.

If in his name only what are the implications of this?

Also we currently have endownments in place to end in 7 and 11 years respectively. Ideally we want to end the mortage in 12 years and have this as additional money that can be put in a pension and or kids college funds.

Given that there is the potential that we will be a significant part of income down should I be made redundant (very good chance due to funding cuts), would we be better off getting a part and part mortage and overpay as and when, or is it best to have it 100% capital?

The_J

All good questions. I would say go for the deal now. The SVR is going up to 4% shortly and that's a good rate. In fact, I would have suggested going for it before. It would have been cheaper then, 6 mths employment would be overlooked at 30% LTV.

If you can afford full repayment comfortably go for that. Part and part will be fine as you will have flexibility with regards overpayments so can chip away at the balance that way. More effort but easier on the cashflow.

princessdon

Thank you - Should be able to afford repayments BUT we are also faced with losing 3K a month plus our Child Benefit so it's going to be a life style adjustment unless I find work ASAP. This way forces me not to spend in starbucks and on handbags.

We have enough savings to end the mortage now but they are getting better rates as savings, so we basically pay off whatever interest (kind of our own offset) and currently overpay by £1000 a month, but have 2 incomes.

I think I may be safer with the part and part - do many lenders allow this?

The_J

Yes, if you have a repayment vehicle in place. Like the endowments or savings, you should be absolutely fine.

Best of luck with the redundancies. You'll be ok.

princessdon

Also which names to apply in and how does this work? Ie if it is in his name only does this mean the house and all the equity is his only?

The_J

Yeah, no need to do that. You don't both have to earn to be on a mortgage.

princessdon

Hi all - went with HSBC Iap given forms sent out. Now here is my dilemma. As I am at risk I haven't put forward my income but they are looking at outgoings and this includes childcare (none contractual - its payg) but they will see it from the bank statements. Now if I'm not working there is no payment - but I think they'll take it as part of their affordability test. Should I be worried or does it not matter much?

princessdon

Anyone know if I declare the childcare payments as outgoings? If I do will this affect affordability?