End of fixed deal - circumstances changed

mazmack

Hello,

This is my first post on here ever, so I hope I include all the correct information.

I hope someone can help us.

My husband and I will come to the end of a 3 year fixed rate mortgage with Abbey in November.

The rate is 5.8%, and our original mortgage was for £139k.

It isn't the best rate around, but at the time we found it hard to get a mortgage of almost 3 times our joint salary of £50k.

Well, its a long story but our circumstances have changed and we now earn approx £36k between us p.a.

We will have approx £133k outstanding in November (I think) and would like to get a new discounted deal if possible.

The house was valued at £155k when we bought it and is probably valued at £165k now.

We have never defaulted on any payments. We might have oustanding other debts of about £10k in November, although we are hoping to be in a position to sort these out before then.

Do you think there is any way we will be able to get a fixed rate deal once this one ends?

Is there anyone you could recommend we apply to?

Should we use a mortgage broker?

Many thanks in advance for any help.

Marion

toltec_2

You should have no trouble getting a prime rate deal, shop around. Hint, visit all the main high street lender's websites and play with the affordability calculator.

JoeK_3

toltec wrote: »

You should have no trouble getting a prime rate deal, shop around. Hint, visit all the main high street lender's websites and play with the affordability calculator.

The OP's income has gone from £50K joint to £36K joint and you think they will be able to go and visit all the main high street lender's.

What for abuse?

Not easy this one

See a whole of market mortgage broker.

JoeK

herbiesjp

Hi Marion

Welcome to the board

First port of call will be your current lender to see what they can offer you.

Once you know what they can offer, you will be in a good position to see what else is on the market. You can go it alone, however there are plenty of fee free whole of market advisers, that they should be able to find you a good deal.

How much are you paying each month on the 10k debt? Is it a loan or combination of loan and cards?

mazmack

Thanks,

At the moment we pay £500 a month on the £10k, which is cards.

This is more than the minimum payment though, which would be less than £250.

We should be in a position to clear a lot of it at the end of September though, if not all, which would help a lot.

herbiesjp

That is correct

Lenders will want to deduct some kind of minimum payment for the cards from your income.

So for example, if the minimum payment was 5%, that would be £500 pm

They would want to make sure that the payment was covered for the year, so they multiply this by 12 = £6000

They then deduct that £6000 from your joint income before applying any income multiples

So you can see that by not having that debt, means they can use all of your income and therefore offer you a higher mortgage amount

HTH

jennfercain

Hi

Me and my partner got a mortgage for 4 times our joint salary, its 5.69% fixed for two years, I'm sure you'll be fine.

mazmack

Thanks all!

Jennfercain - are you allowed to tell us who it is with?

Not sure how this board works yet!

Gorgeous_George

Loads of mortgage companies will offer you a deal.

Add your cards to the loan if necessary but remember to ditch the cards.

Best wishes.



GG

mazmack

Thanks George!

We have definitely learned our lesson with the cards!!

Took us a while to accept we had actually dropped in income and therefore should change our lifestyle but we finally got there!