Morgage woes

Thrugelmir

RowaN wrote: »

Good idea but its only a studio flat, only room for myself.. just about!

Sell the property and bank the cash.

You will then no longer be tied to the property and can seek work anywhere you can find it.

RowaN

Guys thanks for all your advice so far. ethank yes I do need a plan very soon lol, there is something wise and matriarchal about that advice. Having a few sleepless nights here.

I've since been in to HSBC and as expected, they will not extend the mortgage, because I have no income (well, £160 a month, which doesnt really count). Seems crazy to me, as extending it would allow me to produce an income, from moving out and renting it. So much for "helpful banking"... (I know, not HSBC's tag line.. definitely not HSBC's tag line).

But, elsewhere on this forum I've seen talk of mortgage lenders who will offer a BTL mortgage without income (https://forums.moneysavingexpert.com/discussion/3332446). I imagine the rate will be somewhat higher than what I am on now (2% above base). Anyway, I'm going to see what will will offer me, out of curiosity...

kingstreet

Although BTL lenders will calculate affordability based on rental income alone, they will also request the level of personal income of the applicant, being wise to those trying to circumvent the income evidence rules for residential lending.

Rent will need to be 125% of monthly mortgage interest at about 7% per annum and maximum loan will be 75%. Rent of £750 per month will support a £120,000 mortgage, so mortgage will depend on property value, by the sound of things.

Be careful. The property may not be acceptable to some lenders, who dislike studio flats and set minimum square footages. Remaining term of lease, if under 75 years may also be an issue for some.

Talk to a whole market broker about this and see what options you might have...

wannahouse

ACG wrote: »

If you want to let your property out you will need a BTL mortgage.

You can put that on interest only meaning your income will be more (However your mortgage will not be paid off).

For BTL mortgages there is the odd lender who requires no income (which is effectively what you will have as most will not count the income from that property as income unless you were a professional landord).

as far as i am aware Lloyds will do a BTL with no income checks as long as you have at least a 25% deposit and the rent is 8% pa or something like that,....

lawriejones1

I'm really not sure what your opposition to claiming benefits is? You've worked and contributed to the system for 15 years. Don't be conned into believing that those who claim benefits are scroungers or in some way contributing to the financial malaise which we are currently experiencing.

The biggest benefit fraudsters are our political representatives who have been proven to screw us out of thousands given the chance.

As someone who has worked you should be proud to contribute to a system that will support you when you need it.

If it helps, use the language of our financial institutions and: "use this capital injection from the Government to support you during times of European-wide economic turmoil, and enable you to be refloated on the market." you can even promise to pay this money back through something called "taxation" when you once again become a "wealth creator".

Thrugelmir

RowaN wrote: »

I've since been in to HSBC and as expected, they will not extend the mortgage, because I have no income (well, £160 a month, which doesnt really count). Seems crazy to me, as extending it would allow me to produce an income, from moving out and renting it. So much for "helpful banking"... (I know, not HSBC's tag line.. definitely not HSBC's tag line).

May seem crazy to you. However makes sound banking sense.

Mokka

Thrugelmir wrote: »

May seem crazy to you. However makes sound banking sense.

I agree. What does not make sense is your irrational prejudice towards benefits. It's an insurance against being penniless on redundancy, an insurance for which you've paid premiums all your working life. It's even called National Insurance. And now you are refusing to cash it in!

Claiming benefits is unpleasant because you do it at the difficult time in your life. But it is not the benefits that make it difficult- it's the fact that you are out of work and do not have enough income. It's a tough situation and getting benefits temporarily will make it only slightly less tough.

Stop getting angry at uncaring lenders and look at all the options available to you rationally.

hcb42

Definitely claim benefits, JSA will give you the thick end of £250 a month, which sounds like you could then tide over if you do let the place out