Is this Good Advice??? Remortgage

strawbell

Hi I have recently contacted a reputable mortgage adviser who was excellent in getting my mortgage 3 years ago. WE now want to remortgage and borrow extra for an extension. Our background:-

My wages : £8200
Husband : £27050 + £2k overtime
Current Mortgage: £106,600
Further Borrow: £40,000 Total £146,600
We have no overdraft, loans & 1 credit card with a limit of £1000 but with £0 balance.

We have 3 children and 1 due in August.

My advisor has said that we shouldn't put down my income on the application as it will save all the questions about maternity pay and affordability wise my husbands wage will cover it. It just seems really strange to me that I work but not declaring I do and earn. My maternity money with be £596 every 4 weeks and my normal wage is only £650 per month so not much of a difference.

Does this sound ok to you???? He has also recommended Santander 5 year fixed rate (5 year fixed rate is what we asked for). We were previously with platform as found an old overdraft default which should have dropped off last week 27/02. I suppose I'm worried that we will be turned down again, and not declaring my wages worries me more.

Thanks for anyone's expertise!

kingstreet

It won't pass affordability without your income, in my opinion.

ie £27,050 + 60% of OT £1,200 = £28,250 x 5 = £141,250.

Then, you have to make an allowance for dependents. I suspect the adviser is not going to disclose yours.

kingstreet

If I run the true facts through the Halifax affordability calculator, using an A-pass (top level) with a 25 year term, the output is £164,025.

A lower credit score and lower term will pull that down.

Don't commit to paying fees until the mortgage completes and insist on a copy of the mortgage application so you know you are not participating in mortgage fraud.

Wh05apk

Agree with Kingstreet, there is no chance here without your income, with it, it will be fine, going on maternity will present no problems with Abbey.

strawbell

Hi not sure whether I should have mentioned but the house is valued at around £230,000 will that make a difference?

shortchanged_2

No disrespect but that sounds like an awfully large mortgage with your level of income and the size of your family.

kingstreet

strawbell wrote: »

Hi not sure whether I should have mentioned but the house is valued at around £230,000 will that make a difference?

The size of the mortgage is the same, so the affordability won't change. The lower loan to value means less risk for the lender, perhaps, but the risk is not reduced for you.

We're talking 5x income here, three aren't that many lenders who will entertain such a level of borrowing.

dimbo61

The extra £40,000 is to pay for an extension ? Will this add value?
two storey extension adding extra bedroom and bathroom/ensuite?
Extra reception room downstairs with maybe a bigger kitchen?
You need to be very careful as your property is currently worth £230K and spending £40K on an extension would not add £40,000 to the value due to the stamp duty threashold:
£250K one percent stamp duty !So £2500
£270K is three percent stamp duty!So £7500+

strawbell

Hi thank for all your replies.

What do you suggest, should I still go with adviser and insist on him adding my income? I suppose could visit santander myself and ask how they stand on maternity? or shall I go it alone and find my own mortgage!