Remortgage advice needed

[Deleted User]

Hey

Next year I remortgage the 70000 mortgage I have . My income including regular overtime / shift allowance is about 23000.

Last year I helped a family member with some debt problems by getting a 15000 loan in my name. The only debt I have is my mortgage and my credit rating is good.

They pay me and I pay the loan.

I'm starting to wonder though how this will all work when I come to remortage.

I have to include the loan as my debt but that doesn't really get paid by me and I don't know if I can include my relatives payment as another source of income without bringing more gremlins to bear ( i.e tax ).

Looking for some wise advice . Thanks in advance for your input

kingstreet

You cannot include their payment as income.

Your affordability will be impacted by your loan, maintenance and other credit repayments each month.

What is;-

- the monthly loan repayment and your other outgoings
- the term of the mortgage
- the breakdown of basic/shift all/overtime?

Thrugelmir

[quote=[Deleted User];discussion/4806022]
I have to include the loan as my debt but that doesn't really get paid by me and I don't know if I can include my relatives payment as another source of income without bringing more gremlins to bear ( i.e tax ).

[/QUOTE]

And if your relative incurs financial difficulty again and is unable to repay you? The debt is your name so your responsibility.

kingstreet

Let me be more specific.

What is the monthly payment for the loan you have taken out for your friends?

What are your monthly credit outgoings, such as loans, HP and what are your credit card balances? Do you have any childcare or maintenance costs?

What term do you want for the new mortgage?

I want to run this through lenders' affordability calculators and can't do this without good quality, reliable information from you!

ethank

You got a loan of 15k for someone else? At 179.03 per month, it would take 7 years just to pay back the capital and no interest, so is this this correct?

Annisele

Kingstreet will likely be back in a bit with some more figures for you, but in the meantime some lenders publish very approximate calculator guesstimators for how much you can borrow.

Halifax's one is here. NB I'm not recommending Halifax, it was just the first one that came up on my Google search.

It seems to think the loan would knock about £11k off your borrowing power - it'd possibly lend you £98,500 without the loan, or £77k with. (Of course it might not actually lend anywhere near that much, it would depend on your full circumstances).

So, in theory the loan makes a pretty big difference - but in practice you might be able to borrow the amount you need without repaying it.

kingstreet

Assuming you have at least 15% equity in your property, you should be able to borrow upto £76k to remortgage over 20 years, assuming your shift allowance is constant and the overtime can be taken into account.

dimbo61

The words " cart before the horse " come to mind.
Who is your existing lender ?
What does your current mortgage deal revert to at the end of the fix.
What deals does your lender have for existing mortgage customers.
Start point before you pay out to remortgage with another lender