Mortgage refused, alternative option (Bridging loan)

Thrugelmir

Quite a turnaround............

Dear forum members

I am new to this forum. I need some help about my situation. I will be much thankful If someone could advise me on this:

My circumstances are:
We are a couple with two babies under age of 3 years.
I am self employed as an accountant and my earnings are £7000 for the year. My wife does not work and look after children.
We own a one bed room flat, which we bought 2 years before for 125,000. We did put the deposit of £12,000. We pay 250 mortgage payment each month.
I do not know what is the current value of our flat.
We have combined savings of £2000.
We are claiming child benefit, child tax credits, working tax credits and council tax benefit altogther around £900 per month.
The one bedroom flat which we own has become too small for our family of 4. We are looking to rent two bedroom house with garden in the local area.

Now my question is, If we rent my current flat (which we own) and move to a bigger property (with rent of 800 pcm), will we be able to claim any housing benefit? If we do claim then what are chances that our claim will go through and if it does go through then how much will we get?

Will we be better off if we leave our own flat and rent a bigger house? Will we get any further help?

I anxiously look forward for feedback.

Many thanks

https://forums.moneysavingexpert.com/discussion/2527753

Paul_the_Painter

In post 1 you say you have a deposit available of £160,000.
In post 18 you say you have a deposit of £100,000.
Which one is it?
A deposit has to be available funds that have not been borrowed.
You also seem to be confusing some terms, a mortgage IS a secured loan, it is simply a loan secured against your property.
If for instance you have been applying for a mortgage in principle using a deposit value of £160,000 then applying for the actual mortgage with a deposit of £100,000, it is no wonder you have been declined. It could be as simple as you having applied initially for a product with a 50% loan to value limit, and now you need closer to a 60% LTV limit and so there was an automatic decline