Mortgage options interest only

tightasagnats

Hello folks. I need some professional advice for. Many thanks in advance.

I have an interest only mortgage with santander on SVR which is 4.74%

My income dropped since taking it out, but has now changed again for the better, though still less than it was. I am hoping I may now earn enough to remortgage. I overpay each month and can do so up to 10% so capital is being repaid.

I have a permanent job @ £24000 gross a year, worked for many years there, hours increased just this month. This is the new figure on new hours.

Self employment 4900 a year, have earned this also for several years though only proof is my invoices and tax return. No prepared accounts. All for one company, regular amount every month.

Rental income of 4500 a year from tenant in my home. Again no proof other than bank statements.

I owe 140,000 and property is valued at 220,000-240,000. I would like to remortgage, I would like advice please as to whether you think I could get an interest only mortgage, or not, and at what rate on the 140k balance.

_Andy_

What is your repayment vehicle? If it's just 'overpaying' I don't think you'll find a lender willing to do that.

tightasagnats

I overpay the amount that the capital portion would be each month, and I have a stocks ISA for extra savings. Can go down I know, buy that's a bit of backup. Overpayment has worked because it beats interest rates anywhere else.

I've had no problems before. I understand things have changed somewhat, and if I can only get a repayment mortgage that's ok.

Looking at options. Have done well with the overpaying and the ISA.

Thrugelmir

Could you use savings to reduce the mortgage balance? Based on your total earnings you require over 4 times income. A high multiple.

tightasagnats

I could pay £10000 off, bringing it down to £130,000. I guess my question is whether I could get about 4x salary. I know things have changed in past couple of years.

tightasagnats

P.s. never missed payments, excellent credit.