Mortgage advice please

Ian_B_Sussex

Need to sort out some ongoing commitments now am in better employment.
Early 08 took unsecured loan £20k for house improvments but was made redundant mid 08. Statuary redundancy only so after 2 visits to sign on JSA -( 2 was 1 too many) - took work as temp IT contractor till Feb 12 when was taken on with solid company £35k + pension, shares etc.
During temp contracting period used credit cards when needed and have £20k with cards and loan balance taking approx £600 pm.
Have not missed payments but min only on cards now.

Called YBS for position of mortgage and penalty for leaving fixed rate to see if was worth remortgaging.

Approx 82k outstanding with additional 2.5k penalty - 4.99% fixed 2 years left to run.

A realistic value would put house at approx £150k - £160k.

They arranged a branch appointment and have recomended I dont remortgage but take further advance to cover £20k at 3.69% fixed for 2 years at cost of approx £155 pm over term left of 13.5 years.

Branch called underwriters when was in there and they have said lending has changed and to go ahead they need to take wife earnings (£12k) into consideration which will require £200 charge for transfer of equity to add mrs to mortgage plus £75 valuation fee.
They said if adding mrs we could apply for upto £50k .- we are not btw!

My worry now is if I cough up £275 could they still say no and I find the bank balance short plus the mrs added for no reason?
Anyone else had this experiance??

dimbo61

No one can answer this question!
You may get the loan or you might get refused.
I am with YBS and find them a great building society but you might think them C--P
You need to make inroads into the Credit card debt and trying to make ends meet.
Use Money saving expert to make every penny you earn count
Good Luck

Thrugelmir

Ian_B_Sussex wrote: »

My worry now is if I cough up £275 could they still say no and I find the bank balance short plus the mrs added for no reason?
Anyone else had this experiance??

Underwriters are unlikely to make an offer then immediately retract it.
By adding your wife the YBS is gaining more security for the entire debt. Not all lenders will consider debt consolidation. So seems a fair proposal. Also will save you money in the longer term.

You could always apply for the additional money to be advanced over a shorter term . If you can afford higher monthly repayments.

Edit:-

Are the underwriters are aware of the purpose of the additional funds?

Ian_B_Sussex

Yes the branch adviser called up the underwriter to say further advance and what advance was for.
He also said affordability calculator was never working these days so he always rings for a manual calculation with the underwriters.

They were sending the info to him by email.
Have an appointment in the morning so will see what happens..