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Help on Remortgage and redundancy
BobK_2
Posts: 4 Newbie
I was recently made reduntant but immediately picked up a fixed term contract (ending in two weeks) with a view to continue contracting in IT. Myself and my partner have just accepted an offer on our house and
need to extend our mortgage by about £75k to buy the house we want (We currently have a little under £100k owing on our current mortgage).
I'm concerned that due to my current employment status we will get refused the extension. I think our options are....
1) Withdraw from the sale of our house
2) Sell our house and rent for 6 months allowing me to sort out my work situation (Assuming the lender will give us a payment holiday)
3) Borrow the £75k against my partners permanent income (£37k), however we have the existing £100k in joint names so assume they'll take this into account.
I do have payslips for the last 3 months and a P60 and I'm not sure how much investigation our lender will do (we are staying with our current one), obviously if they phone my previous employer I'll be a bit scuppered !! Plus it probably makes sense to remain honest on these things.
Any advice greatly appeciated.
need to extend our mortgage by about £75k to buy the house we want (We currently have a little under £100k owing on our current mortgage).
I'm concerned that due to my current employment status we will get refused the extension. I think our options are....
1) Withdraw from the sale of our house
2) Sell our house and rent for 6 months allowing me to sort out my work situation (Assuming the lender will give us a payment holiday)
3) Borrow the £75k against my partners permanent income (£37k), however we have the existing £100k in joint names so assume they'll take this into account.
I do have payslips for the last 3 months and a P60 and I'm not sure how much investigation our lender will do (we are staying with our current one), obviously if they phone my previous employer I'll be a bit scuppered !! Plus it probably makes sense to remain honest on these things.
Any advice greatly appeciated.
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Comments
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1) Withdraw from the sale of our house
could do
2) Sell our house and rent for 6 months allowing me to sort out my work situation (Assuming the lender will give us a payment holiday)
are there redemption penalties on your mortgage? If so they will need to be piad, some lenders will refund them if you take another mortgage within a few months but it does vary.
3) Borrow the £75k against my partners permanent income (£37k), however we have the existing £100k in joint names so assume they'll take this into account.
I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Cheers for the help.
We do have a perfect payment history plus would be contributing jointly to the mortgage, in fact earn more than when I was in a permanent role, however the work is short term contracts so assume I'll need time to build up employment history before they look at it seriously.0 -
I don't know that, with a history of solid work in the field, a lender may well be able to consider you.
Hopefully a broker will be along soon with accurate information.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I was recently made reduntant but immediately picked up a fixed term contract (ending in two weeks) with a view to continue contracting in IT. Myself and my partner have just accepted an offer on our house and
need to extend our mortgage by about £75k to buy the house we want (We currently have a little under £100k owing on our current mortgage).
When your house is sold, your existing mortgage will be paid off from the sale proceeds.I'm concerned that due to my current employment status we will get refused the extension.I think our options are....
1) Withdraw from the sale of our house
2) Sell our house and rent for 6 months allowing me to sort out my work situation (Assuming the lender will give us a payment holiday)
3) Borrow the £75k against my partners permanent income (£37k), however we have the existing £100k in joint names so assume they'll take this into account.
2) What payment holiday? If you sell, and live in rented accomodation, you will not have a mortgage!
3) How much will you need to buy the new house £175,000?I do have payslips for the last 3 months and a P60 and I'm not sure how much investigation our lender will do (we are staying with our current one), obviously if they phone my previous employer I'll be a bit scuppered !! Plus it probably makes sense to remain honest on these things.
Any advice greatly appeciated.
Will you be employed on the fixed term contract or self employed?
There are lenders out there that will lend up to 5 x income. Your partners permanent income of £37,000 x 5 = £185,000 should be sufficient.
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 -
What is the sale price of your current house?
You need to take the sale price of your property and deduct the following:
- Existing mortgage debt inc any closing fees
- Estate agents fees
- Legal fees for selling and buying
- Stamp duty for buying
- Valuation fees on your new purchase
- Potential arrangement fees
- Removal/Storage costs
- Any unsecured debts that you want to clear
You will then be left hopefully with what you will have left towards the deposit of your new home. This is the figure that I would think help us understand what you need for a mortgage towards your next purchase.
When you can tell us the mortgage amount required and if you have any other debts that you are not clearing through house sale, we will tell you whether you are going to be OK.I 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 -
Sorry, should have given more details.......
Current outstanding Mortgage : £98K
Sale price of house : £148k
New house price : £220
Obviously we'd be looking at say £5-6k cost (Stamp duty, solicitors fees) I guess.
The lender will waive any closing fees providing we stick with them so thats fine.
Existing debts per month for the two of us probably total about £600 (Credit cards, Student loan, car).0 -
Sorry, should have given more details.......
Current outstanding Mortgage : £98K
Sale price of house : £148k
New house price : £220
Obviously we'd be looking at say £5-6k cost (Stamp duty, solicitors fees) I guess.
The lender will waive any closing fees providing we stick with them so thats fine.
Existing debts per month for the two of us probably total about £600 (Credit cards, Student loan, car).
In this post, you have assumed that you are staying with your existing lender.
Will they lend you the money based on one income?
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 -
Well to cut a long story short we saw our lender yesterday and they are fine with lending the extra. This was based on my previous earnings/employment history and potential future earnings, savings and my partners salary.
Cheers for the help.0
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