remortgage advice needed...

seacrest4

i would like to cut back on my work a little to get that work/life balance back, currently working major hours!!! but im worried when my fixed rate is up and im shopping around for a good deal that a lower income will make it difficult to get a mortgage.
I increased my cleaning business (from 35 hours to roughly 57) a few years back so i could increase my savings and also have a larger income to be eligable for a better mortgage, last year i finally got on the property ladder...THANK GOODNESS!!! id like to take it a little easier now (life is important too)but would a lower income affect me getting a new mortgage(currently have a mortgage of 85,000),also does the increase in the properties price come into consideration at all when it comes time to shop around, one year on and the property has increased.......90%!! which is FANTASTIC!!!!! (its in northern ireland, we've had the biggest increase here in all of europe, i think)
thank you for your help, first time poster:rolleyes:

MortgageMamma

HI Seacrest what do you earn and what do you need to borrow? Are you self employed? do you have a partner? if so what do they earn

seacrest4

hi, thank you,
at the moment around 25,000 a year (but its killing me!). cutting my hours would take me to roughly 20,000 maybe even 19,000. i am self employed, no partner. but my place has went from 100,000 to near 190,000 .other identical apartments in the development have been up for sale recently so i think mine would be the same, not that im thinkin of selling.

MortgageMamma

How old are you? do you have any other financial commitments, such as loans or credit cards?

seacrest4

im 33, no other loans/higher purchase's and credit card bill currently 1,000 which is really annoying me as its just runout of 0%....uggg! but i think im going to pay it off instead of going for another 0%

MortgageMamma

Oh you will quite easily be able to borrow 85k on a 19-20k salary with no other commitments. what type of a mortgage are you looking for another fixed? who is your current lender have you checked what they will offer you?

seacrest4

yeah i will prob. go for a fixed again, its with birminghan midshires and its 4.59 which is great for a self cert first timer! but can you tell me if the major increase in the properties value will come into play at all

seacrest4

oh yes also, im currently in a fixed rate and its not ending till this time next year, but i wanted to get all this info before i begin to cut back my hours

herbiesjp

YOu 'll be fine.

The fact the property value has increased to £190k means that your loan to value will have decreased (jargon alert!)

What that means is the percantage of you borrowing will have decreased so £85k against £100k is 85% borrowing. However £85k against £190k is 44.74%

The loweer this percenatge, the more lenders/optiosn that come into play for you. Your income looks like it will be enough to support that mortgage even on the lower figures - just don't take out any other debts, and make sure you have all your accounts up to date and you'll be fine.

HTH

Mr_helpful

Ask BM first whether they will give you a loyalty product It a bit hit and miss but they gave ma a fantastic one on my buy to let with them

AndyWallace

Mr_helpful wrote: »

Ask BM first whether they will give you a loyalty product It a bit hit and miss but they gave ma a fantastic one on my buy to let with them

Certainly at the moment they are doing some fantastic loyalty transfer rates. Obviously, in a years time, things may have changed.

Andy.