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Remortgage Advice pls
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Jezscorpio
Posts: 51 Forumite
Remortgaging - How does it work?
I have a house worth 225K with an outstanding mortgage of 50K so theoretically £175K assets tied up which I want to part release.
If I wanted to remortgage up to say £150K would the lender be looking for proof of income to show that I could meet the repayments or would they take the view that the LTV ratio means that worst case scenario they would always comfortably get there money back and therefore the proof of income criteria would not be as stringent?
The reason I ask is because I've recently gone self-employed and have no accounts to prove income.
Appreciate your comments
I have a house worth 225K with an outstanding mortgage of 50K so theoretically £175K assets tied up which I want to part release.
If I wanted to remortgage up to say £150K would the lender be looking for proof of income to show that I could meet the repayments or would they take the view that the LTV ratio means that worst case scenario they would always comfortably get there money back and therefore the proof of income criteria would not be as stringent?
The reason I ask is because I've recently gone self-employed and have no accounts to prove income.
Appreciate your comments
0
Comments
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Your expected income would still need to be able to support the new higher mortgage amount, but there are some lenders that will agree the mortgage for you based on your current scenarioI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Yes, you can do that theoretically.Jezscorpio wrote: »Remortgaging - How does it work?
I have a house worth 225K with an outstanding mortgage of 50K so theoretically £175K assets tied up which I want to part release.Jezscorpio wrote: »If I wanted to remortgage up to say £150K would the lender be looking for proof of income to show that I could meet the repayments or would they take the view that the LTV ratio means that worst case scenario they would always comfortably get there money back and therefore the proof of income criteria would not be as stringent?
Yes, this is true.Jezscorpio wrote: »The reason I ask is because I've recently gone self-employed and have no accounts to prove income.
Appreciate your comments
And this is the potential problem.
What you would be looking for is a self certification remortgage.
To help you with this, you will need the services of a whole of market mortgage broker, one who is prepared to help you with projecting your income.
You should not proceed with any applications until this has been finalised, as failed application made to a lender will leave a footprint or finger print and will make any new lenders suspicious of the reasons for being declined.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Thanks for the comments so far guys0
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