Remortgaging with a drop in income

skyela

Hello,

I wonder if anyone could give me some advise on remortgaging my property please?

I took out the mortgage in Sept 2011. The house value was £119,995. I put down £36,495 - so the amount we borrowed was £83,500. So we put down just over 30%.
I think we must now owe around the 80k mark. (The mortgage term was 30 years).

At the time I earned more than I do now, I earned 19k. Now, I'm earning around 13k.

I have been messing around with online remortgaging calculators, and when I put in my current earnings - I get errors, as I'm assuming they think I don't earn enough for the amount I now owe.

I just wanted to know, when it comes to remortgaging, if I stick to my current supplier, would this drop in income be a problem?
Or is it still possible to switch suppliers to get a better deal?

During the last 1.5 years I have never had a problem with paying the mortgage, and have a clean credit history etc etc.

The other option I have been looking at, but I'm still not sure about is, would it be better to put my partner on the mortgage?
Between us then, it would bring our income up to 25k. Which would bring the mortgage owed to only 3.2x our incomes.

Thank you for any help.

kingstreet

You may be offered a customer retention product by your existing lender which will not require any further status checks.

If you do consider remortgaging, the new lender will check your income and you do not earn enough to justify an £80k mortgage.

Check the "follow-on" rate for your current lender/product and compare it with retention products available to you from your current lender.

A transfer of equity would see you current partner included in the title to the property. If you think you wish to consider that, approach your existing lender for product options and costs of the TofE and look at remortgaging elsewhere jointly.

skyela

kingstreet wrote: »

You may be offered a customer retention product by your existing lender which will not require any further status checks.

If you do consider remortgaging, the new lender will check your income and you do not earn enough to justify an £80k mortgage.

Check the "follow-on" rate for your current lender/product and compare it with retention products available to you from your current lender.

A transfer of equity would see you current partner included in the title to the property. If you think you wish to consider that, approach your existing lender for product options and costs of the TofE and look at remortgaging elsewhere jointly.

Hello,
Thanks for your quick reply!
If we did go down the route of staying with the same supplier, could we find out about retention deals now, or are these usually issued when the fixed deal is up?
Sorry for all the questions!

kingstreet

You can ask them what they are offering now, remembering that they may be different at the time you are able to confirm yours.