Remortgage

Doxy

I am new to the forum so hope this is the right place to post.

I need some advice and I am hoping someone will have an answer.

Both myself and my husband are retired with occupational pensions, his £1500per month and mine 1300 per month net. I will be 61 in Sept and he is 53. We have a mortgage and owe approx £15,000. Our house is valued at about £210,00.

We would like to borrow an extra 15000 when we remortgage to pay off a very unexpected debt. We have an excellent credit history. Do you think this would be possible?

Thank you in advance.

Doxy

Doxy wrote: »

I am new to the forum so hope this is the right place to post.

I need some advice and I am hoping someone will have an answer.

Both myself and my husband are retired with occupational pensions, his £1500per month and mine 1300 per month net. I will be 61 in Sept and he is 53. We have a mortgage and owe approx £15,000. Our house is valued at about £210,00.

We would like to borrow an extra 15000 when we remortgage to pay off a very unexpected debt. We have an excellent credit history. Do you think this would be possible?

Thank you in advance.

Is there anyone who can offer advice please?

holly_hobby

Yes, it should be at 30/210 borrowing - assuming that this will be a repayment mortgage, and you don't require a term in excess of 14 yrs (ie max redemption age of 75 yrs with most, apat fron a couple of lenders).

If you wanted a longer term, and/or interest only (with no repayment vehicle), then it will be more difficult, but absolutely not impossible to place.

I would suggest a broker to wade through the market on your behalf.

Hope this helps

Holly x

Doxy

holly_hobby wrote: »

Yes, it should be at 30/210 borrowing - assuming that this will be a repayment mortgage, and you don't require a term in excess of 14 yrs (ie max redemption age of 75 yrs with most, apat fron a couple of lenders).

If you wanted a longer term, and/or interest only (with no repayment vehicle), then it will be more difficult, but absolutely not impossible to place.

I would suggest a broker to wade through the market on your behalf.

Hope this helps

Holly x

Thank you very much Holly for responding. It would be a straight repayment mortgage as that is what we have right now. We have about 8 years left so were looking at perhaps borrowing 30,000 over 10yrs.

Would the interest rate be the same as is for mortgages, or would it be higher due to the fact that the extra borrowing is to pay off this possible unexpected debt?

Sorry I am rather ignorant of such things, never been in this position before:(

One more thing, would we be obliged to say what the extra borrowing is for?

kingstreet

You will have to disclose the use of the increased borrowing, but most lenders only have issues with business start-up capital, tax debts and in the dim and distant past, gambling.

Everything else they pretty much take in their stride.

amnblog

No problem, we did one just like this recently, but deal with a broker.

Doxy

Doxy wrote: »

Thank you very much Holly for responding. It would be a straight repayment mortgage as that is what we have right now. We have about 8 years left so were looking at perhaps borrowing 30,000 over 10yrs.

Would the interest rate be the same as is for mortgages, or would it be higher due to the fact that the extra borrowing is to pay off this possible unexpected debt?

Sorry I am rather ignorant of such things, never been in this position before:(

One more thing, would we be obliged to say what the extra borrowing is for?

kingstreet wrote: »

You will have to disclose the use of the increased borrowing, but most lenders only have issues with business start-up capital, tax debts and in the dim and distant past, gambling.

Everything else they pretty much take in their stride.

Thank you:) It is not definite debt as yet, I am trying to pre-empt as it is a possibility. I have to admit I am very distressed about the whole issue as we have never been in a situation where we have owed money like this, apart from the mortgage of course.

Shortened version of events. Husband medically retired three and a half years ago after battling long term disability (not life threatening) He was advised to claim ESA when he went on to half pay at the time by his former employer(government)

DWP were and tax office were informed of this process and indeed he has been paying tax on his ESA, he has been in the support group since the start.

It turns out that whilst he is entitled to the benefit as he meets all the descriptors, he is not entitled to any money because of his occupational pension. We always believed this was a non means tested benefit but sadly no. (Even CAB thought the same) Despite evidence re correspondence with tax office and DWP we have been told there has been an overpayment and we will most likely have to pay it back. We are just waiting now for them to confirm this.

It is fair to say we are in a state of shock and devastation.

Doxy

amnblog wrote: »

No problem, we did one just like this recently, but deal with a broker.

Thank you we will do so. Please see above post.

witchy1066

Doxy, you will not have to re-mortgage your home,
to pay back any overpayments ,

once you know for sure how much you owe/have to pay back, go back to the CAB and ask them to work out a payment plan and submit it to the DWP, providing this is a reasonable payment plan worked out on your income and outgoings they are very unlikely to reject it,

amnblog

witchy1066 wrote: »

Doxy, you will not have to re-mortgage your home,
to pay back any overpayments ,

once you know for sure how much you owe/have to pay back, go back to the CAB and ask them to work out a payment plan and submit it to the DWP, providing this is a reasonable payment plan worked out on your income and outgoings they are very unlikely to reject it,

sounds sensible

Doxy

witchy1066 wrote: »

Doxy, you will not have to re-mortgage your home,
to pay back any overpayments ,

once you know for sure how much you owe/have to pay back, go back to the CAB and ask them to work out a payment plan and submit it to the DWP, providing this is a reasonable payment plan worked out on your income and outgoings they are very unlikely to reject it,

Thank you Whitchy,

We did wonder about this but my husband is so devastated about the situation he wants nothing more to do with the DWP and would sooner find the money to pay it back. He finds it all so stressful not helped by the chronic pain he suffers. We can't believe that for all this time they never picked up on it. His occupational pension is even administered by the DWP! But of course a different dept. They compliance officers who visited us were very kind, they could clearly see that there was ever any intention to hide the fact that he was in receipt of a pension. They even told me I should be claiming carers allowance and should have been for the past 3 plus years. I can't bring myself to apply for that under the circumstances.