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transfer of equity - affordability
anukis
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A remortgage is a new mortgage with a new lender to pay off the old one. That could be something you want to consider to get a lower rate, but you should be wary of the fees and costs of a new mortgage and the fees/penalties Halifax might charge.
Let's assume you do a simple transfer of equity to remove your ex from the current Halifax mortgage. Once the lender has decided this is acceptable, the matter is referred to a solicitor. The total cost for a TofE is around £400 - £600, including a fee to the lender.
If Halifax will take 100% of all your income streams into account, you would just about qualify for a mortgage of the amount you receive. This also does not take into account you having dependents, nor any existing ongoing credit commitments.
I've run your details through the Halifax affordability calculator and a top-level A pass indicates a £202k mortgage over 25 years.
http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx
I'm therefore a little sceptical that you will be able to complete a TofE at this time without a cash injection. Ask Halifax. A revaluation is not normally necessary for a TofE, to answer your other question.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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Halifax has three credit score pass levels, A, B and C from best to worst. The credit score determines the maximum loan.
Secondary income is accepted at 60% maximum. That's why, when I put it through the affordability checker it came back at £202k, because it only took 60% of the maintenance, bonus and child benefit.
I also allowed for one dependent.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Unless you will still be tied in with Halifax I would consider looking at NatWest who sorted a similar case for me and so long as the child maintenance is formalized they should accept all the income and will even consider a little bit of an income stretch in such exceptional circumstances. Running it thru the calculator right now its coming out at £210k so just 7k stretch required if this stacks up. Best of luckI am a Mortgage Adviser. You 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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A/ numbers are the old Halifax accounts. The new LBG ones start 10/. I have no idea why one has to be done one way, while the other is different.
Systems, perhaps?I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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No idea if your valuation will be higher. You are going to have to pay the fee and see what comes back.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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