How on earth are we locked in for life?

amortgageminefield

I wonder if there is someone out there with some common sense that could help us?

We currently have a mortgage on our property, part repayment, part interest only. My husband took it out before we got together and now we are looking at changing things around. Firstly, we want to move house and so we wanted to 'port' the mortgage to another property which is the same value (its actually slightly cheaper so we would need to pay the remainder off which is not a problem). We were told that we are unable to do it as it would be classed as a new mortgage and interest only part would not be on offer. So we wanted to go into full repayment. We were declined. The mortgage is just in my husbands name as I have been working for myself for the past few months and without enough 'books' can not be looked at too.

So what appears to have happened is now, not only can we not get a new house, but we are stuck with the mortgage as it is, because they don't want the 'risk'. But hang on, is there not a whacking risk involved in the fact that we have half the value on interest only with no real plan of clearing it?!

My husband was sold that on affordability about 8 years ago, and we all know what happened after that, but as a middle aged man, who earns approxametly £80000 per annum, you would have thought that someone, somewhere would actually see it as less risk.

Please can someone offer some advice. I just can't see how we can be so screwed over. Just seems that common sense has well and truly gone. If thats the case, and we are NEVER going to pay off the second part of the mortgage, we may as well up sticks and rent because lets face it, its a debt on the never-never!

Feeling imprisoned in a house we don't want,

amortgageminefield!

Dave_Ham

Given the income, I am sure there will be a solution although will require some more information.

Who is the current lender
Approx. mortgage balance
Property Value
New property value
Age
Your income
Any historic credit problems

Figures do not need to be exact. Alternatively, go and spend an hour with a local broker (non Estate Agent one) and you will quickly know your options...

It can be frustrating but sure there will be a solution....

bargainbetty

Please note, the mortgage market is very different from where you were eight years ago.

Have you requested details of why your OH may have been declined? Has he taken out substantial lines of credit elsewhere? Have you spoken to your own bank, or others, or a broker? If this is all from one lender, or you have a fixed rate period etc, then you need to look further afield to discover your options.

amortgageminefield

The only thing I KNOW (I control the finances, he controls the mortgage!) is that he recently bought a car on HP. The car is funded by his company by way of a monthly payment into his salary to cover the cost but essentially, that was bought at the end of march.

amortgageminefield

Oh, and this is his bank and a broker. Both of which are offering him a big fat nothing

Dave_Ham

Without more information, it is impossible to speculate.

Would suggest you/he sees a better broker.

amortgageminefield

Dave_Ham wrote: »

Given the income, I am sure there will be a solution although will require some more information.

Who is the current lender
Approx. mortgage balance
Property Value
New property value
Age
Your income
Any historic credit problems

Figures do not need to be exact. Alternatively, go and spend an hour with a local broker (non Estate Agent one) and you will quickly know your options...

He currently has his mortgage through Alliance and Leicester (as was)
Left on the mortgage, £171000
Offer on ours at £194500
Buying at £189950
He is 51 years of age,
Basic salary of £54000, earned £80000 this year so far with commission. £100k last year

No credit problems other than the odd admin failure from a credit card company. They accepted fault.

Dave_Ham

Definitely a better broker required. I do not think this is unachievable.

Whilst it is the mortgage size, loan to value and age that are the barriers these can all be overcome (other things being equal)

They are correct that this would all now need to be on repayment and I think you accept this also from your earlier post, this can still fit.

Unless of course the Car HP was some mega finance with a huge monthly financial commitment, or multiple unsecured/secured debts in the background...

All the best

amortgageminefield

What does a 'better broker' look like? We thought we had gone to a 'whole of market' broker? Gosh, this is more confusing than I ever thought.

Dave_Ham

And to be honest it should be consistent across the industry - but it is not.

Many of the mortgages I do are after another broker/advisor has done their best to get in wrong..

You really need a mortgage specialist and not necessarily an IFA, who does mortgages or a semi tied mortgage broker.

Obviously, I am not aware of the full sitution so as I illuded to if your Husband has £50k worth of unsecured loans and £25k on credit cards your existing broker may be correct and there are no solutions - on the face of it there should be a solution, so long as you have budgeted for a bigger monthly cost.

A&L backbook is now with Santander and they will not offer anything on Interest Only to existing clients and are quite harsh currently in their own right...

Thrugelmir

amortgageminefield wrote: »

No credit problems other than the odd admin failure from a credit card company. They accepted fault.

What's an "odd admin" error?

To have more than one suggests perhaps there's more to this, i.e. what's showing on his credit record.