Mortgage lenders based on LTV %

michmush77

Hi, i am looking to remortage, i am with santander on their SVR which has just gone up to 4.79% after coming to the end of a fixed a couple of years ago. Since then i have had a baby and work only part time, my husband is self employed and between us we dont earn enough with our combined salaries to get the £133,000 we need to borrow.

Our house is worth approx £165,000 - £170,000 in the mortgage companies world.... £185,000 in the real world, so its 80% to 85% ltv.....there are much better deals out there if i could find a company who will lend on our ltv and not our salaries.....i know it appears we are high risk to them. Also do any companies take into consideration tax credits??

Any ideas anyone??

Conrad

Some companies can take a more flexible intelligent approach and work with an Accountant to try and get a solution. In particular some small Building Societies that may or may not operate in your location.

Maybe try a GOOD local broker.

All the best.

GMS

Equity cannot pay the mortgage, only income can.

Are you employed or self employed? What are your salraies?

Have you asked the current lender what deals they could offer you?

michmush77

True... im employed, my salary is now £9500 plus £4000 in tax credits and child benefit.
My husbands self employed and his gross profit last year was 18,500 but his net profit was 11,500 because he bought a new van.
Santander my current lender cant give me a better deal.

_Andy_

Not going to happen elsewhere on those incomes.

kingstreet

How much did he spend on the van? £30k? :eek:

If he only spent the £7k shown, this capital allowance should have been spread over the next few years, not set against a single year's income?

opinions4u

michmush77 wrote: »

between us we dont earn enough with our combined salaries to get the £133,000 we need to borrow

A rather important point.

Our house is worth approx £165,000 - £170,000 in the mortgage companies world.... £185,000 in the real world

What do you call real world? The world of selling a repossessed house? The silly valuations estate agents come up with to get your business? Or the real world of what properties actually sell for (not the price tag on Right Move). And how, exactly, does a higher valuation tell a lender you can afford the payment?

, so its 80% to 85% ltv.....there are much better deals out there if i could find a company who will lend on our ltv and not our salaries

The nation is in a state of financial crisis caused in part by lenders chucking money at people who can't really afford their commitments. Why do you expect them to carry on with this sort of insanity?

.....i know it appears we are high risk to them.

Any ideas anyone??

Overpay your mortgage. Get the debt down. Increase profitability in the business. Review in 12 months time.

michmush77

we are doing that opinions, we decreased our mortgage term by 6 years and are paying more. We are reassessing after 3 years of doing this

Rents cost the same as my mortgage costs where i live, so at least my home will be mine one day.

i understand the crisis, im just after advice, not a lecture......but thank you.

Thrugelmir

michmush77 wrote: »

Rents cost the same as my mortgage costs where i live, so at least my home will be mine one day.

Owning a property incurs expenditure in the form of maintenance and upkeep. So rent and mortgage aren't directly comparable.