Mortgage advice please HELP!

Emmielou69

We want to purchase a £200,000 property to live in. Our current house has been valued at £130,000, we have £32,000 remaining on the mortgage at an excellent interest rate at present for the next 2 years.!

We need to sell our house ASAP & i have £40,000 in savings to put towards the property.!

I'm unable to take out a mortgage as I'm currently unemployed & my husband earns £25,000 per year & has an excellent credit rating & is being offered the option by the bank to keep the £32,000 current mortgage at the very low rate & move it to the new property plus £25,000 on a new seperate mortgage!

So we have basically
£100,000 equity in current property
£40,000 in savings
£25,000 offer on existing mortgage + £32,000 -
= £165,000 shortfall of £35,000

Considering the value of our new home is £200,000 & we basically have a deposit of £140,000 I think the banks being slightly mean! It's hardly a huge risk to take!!

The bank is the Woolwich by the way.!

Does anyone have any ideas or advice to help us out here?!Huge thanks in advance !

Em x

ACG

Is it a pre agreed mortgage limit you have?

There is nothing to say you cant apply for more, its just the system says you can have that without going through the full process.

Emmielou69

Hello,
No this is a request for a new mortgage. The maximum they said he could have on a new mortgage would be £57,000 & recommended he keep his £32,000 mortgage & then borrow the £25,000 on a brand new mortgage.
I know the financial crisis is hitting the industry hard but I thought the max was 3 & 1/2 x your salary... They only seem willing to offer him twice his salary.
We've really scrimped for the past 5 years to save for a bigger house & feel we'd have probably got a better deal as a first time buyer in today's market.
Seems very unfair.

Thanks
Em x

Thrugelmir

Emmielou69 wrote: »

I know the financial crisis is hitting the industry hard but I thought the max was 3 & 1/2 x your salary... They only seem willing to offer him twice his salary.

Do you have any children or unsecured debt? Both could affect the application.

The fact that you are financially dependent will impact the amount that the lender will advance.

Emmielou69

No children currently & no unsecured debt, he has a credit card that he uses for petrol expenses for business, it has a £1500 limit... But it's paid in full every month and cleared in full. He only uses about £350 per month on it but cleared on 1st of every month.

Thanks

Dave_Ham

Hi Em,

Unless you are aged 50+, then something has been keyed incorrectly here.

This is not an accurate reflection of Woolwich lending, given what you have said...

Is income structured out of overtime or commission for OH??

Emmielou69

Hi

Husband is 38, basic salary is £25,000, he is capable of achieving overtime but we haven't even mentioned this aspect or included it in income summary as it is both irregular & the opportunity will probably be withdrawn in the next 18 months.

We were looking at a house 2 years ago based on his salary alone & they were willing to offer him £82,500 .... & we had a credit card in debt of £2000 at that time... We have got his credit report from experian in case there was any outstanding debt that may be affecting the offer.... But have come up with zilch ! He's as clean as a whistle. We are perplexed but assumed it was the current financial climate, but it would seem not.

We felt we'd would be in quite a strong position as opposed to other buyers having such a large deposit but it doesn't seem to be working in our favour right now.

Thanks again

Em x

Dave_Ham

What is your current mortgage payment monthly..?

Something is definitely wrong here...

Emmielou69

Currently paying £255 per month ( he has actually been paying £355 for the last year as interest is so low & wanted to knock as much off as we could so he has been over paying by £100 in the last year)

Em x

michelle2008

Am I being stupid ( probably!!). But is the problem you need £60k and they will only offer you £57k?

Could you not take a small loan?

How much did you ask for?

Dave_Ham

This honestly does not make sense..

I would suggest getting a 2nd pair of eyes on this?

Not got 6 or 7 kids?

No CSA or maintenance payments?

Car finance?

Sorry, scraping the barrel now as honestly cannot get my head round it. If one item has been keyed incorrectly, it will give a false return...