Are we trapped by our mortgage??

brummie1980

I would really appreciate some advice, i am completely new to MSE forum but i think this is where i will get the advice i so desperately need!

My husband and I got our mortgage with Santander 6 years ago based on both our salaries. Since then, my husband does the same job but is now self employed (has been for 3 years) and i am currently a stay at home mum. We have a toddler and a baby on the way. We desperately want to move from our 2 bed townhouse, to a 3 bed family home with a drive and a garden (approx £30k more).

If our house sells for the price we bought it then we should have £29k equity and we also have £20k savings. The plan was to transfer our mortgage and pay any extra we need from our savings, however after talking to Santander this evening, they have informed us that they will base the transfer on our current situation i.e husbands solo salary and that our savings would not have any affect on this - they would not be willing to give us another mortgage.

So basically, are we trapped because the mortgage that we have is based on our past circumstances which we no longer earn, even though we have been living comfortably on my husbands solo salary for the past year. We have never missed a payment and have a clean credit history. I feel so deflated as our current house is not family friendly at all. Do we have any options?

Thank you, any advice would be greatly appreciated.

kingstreet

You don't.

You cannot transfer a mortgage from one property to another. A new mortgage is underwritten and affordability established at the time. If you are now living on one income, it is only that income whihc will be taken into account.

Some lenders will consider child benefit and tax credits, so you may get more from others than you will from Santander.

Caladan

Good idea coming to a forum like this one - An even better idea would be talking to a reputable, experienced Mortgage Adviser.

By the sounds of it Santander is unlikely to approve the porting of your Mortgage, but that doesn't mean no lender will (and it may cost you more in the long-term, but if it's for the right reasons that shouldn't necessarily hold you back).

Your credit history doesn't really matter in this instance - It's the affordability that is being assessed. You can have a perfect credit score/history but if you only earn £20k a year you aren't going to get a £50k personal loan for example.

Basically - I'm reasonably confident you can find a solution to your problem, but it will probably involve some compromise.

Thrugelmir

Caladan wrote: »

Good idea coming to a forum like this one - An even better idea would be talking to a reputable, experienced Mortgage Adviser.

Maybe an idea to update your signature. There are forum rules too that should be abided to.

Caladan

Thrugelmir wrote: »

Maybe an idea to update your signature. There are forum rules too that should be abided to.

I don't have a signature do I?

Edit: Oh I think I understand. I'm not a Mortgage broker or adviser, hell, the very thought of obtaining CEMAP gives me a headache, let alone RO whatever it is (4?). I do however have some experience in Mortgage processing.

In an instance where someone cannot use their current lender they only really have 2 options - Find one themselves or get an IFA/Broker to do it for them. The first option is riskier than the second I guess - Hence suggesting contacting an adviser.

I actually have a somewhat dim view of many brokers but from experience, the ones I've met in person or had to deal with for various reasons have impressed me - Hence the words reputable and experienced!

Kind regards,
Cal

kingstreet

It's alright, Cal.

Don't worry about it. A lot of brokers feel the same way about HSBC employees...

Thrugelmir

Caladan wrote: »

Edit: Oh I think I understand. I'm not a Mortgage broker or adviser, hell, the very thought of obtaining CEMAP gives me a headache, let alone RO whatever it is (4?). I do however have some experience in Mortgage processing.

:beer: Apologies,

After Kingstreets post you sounded like a broker touting ! We've had plenty come and go on the board.