Current mortgage set to expire, need advice...

N20Y1D

We currently have a fixed rate mortgage on our house which is due to expire at the end of August.

Our house is currently valued at a minimum of £260000 and we will require a mortgage of £140000

However when we took the mortgage out both my wife and i were working, she has however had to leave her job as we have had a baby who is now 14months and she is now looking at returning to work shortly.

however as we only have the one wage coming it at present (it has been this way for over 15 months and we have never missed a payment or anything like that) the mortgage companys i have looked at are unwilling to lend us anything like the 140000 we need at least not at a competitive rate.

i just wondered if anyone else had been in a similar position or if anyone had any advice on good places to look?

herbiesjp

Well it will depend on the amount of the single income and if there are any other debts in the background

luckyfool

You don't mention how much you earn?

With that kind of low loan to value there are some very attractive rates out there from lenders who will consider relatively high income multiples. Your first port of call should be your current lender to see what they will offer. The 2nd should be a good broker who can give advice on what lenders will be able to assist.

An example would be First National are a "bad credit" lender who only deal through brokers, but because they have yet to revise their rates upwards, they currently have a 5.44% 3 yr fixed rate available under 60% which is competitive and better than 90% of the deals available from any of the high street lenders, most of whom have put rates up several times in the last 4-6 weeks. You need to speak to a broker who will be able to give advice and find the right solution for you,

regards

Luckyfool

N20Y1D

luckyfool wrote: »

You don't mention how much you earn?

With that kind of low loan to value there are some very attractive rates out there from lenders who will consider relatively high income multiples. Your first port of call should be your current lender to see what they will offer. The 2nd should be a good broker who can give advice on what lenders will be able to assist.

An example would be First National are a "bad credit" lender who only deal through brokers, but because they have yet to revise their rates upwards, they currently have a 5.44% 3 yr fixed rate available under 60% which is competitive and better than 90% of the deals available from any of the high street lenders, most of whom have put rates up several times in the last 4-6 weeks. You need to speak to a broker who will be able to give advice and find the right solution for you,

regards

Luckyfool

Thanks for the information, my salary is £25-27k pa including bonuses, and together with my wife we have about 3k worth of credit card debt.

herbiesjp

I'm guessing you will be getting tax credits as well which could be taken into account

Which lenders have you approached? As at 54% loan to value, a lot of lenders will be more flexible in the multiples/underwriting

N20Y1D

herbiesjp wrote: »

I'm guessing you will be getting tax credits as well which could be taken into account

Which lenders have you approached? As at 54% loan to value, a lot of lenders will be more flexible in the multiples/underwriting

Have spoken to a broker at countrywide (mortgage is currently with nationwide) but he hasnt given us any firm figures as the wife recently had a second interview and had she got that then there wouldnt be a problem but without her salary he has said that there is nothing at a really competitive rate..

herbiesjp

You say you need £140k - is that the value of your current mortgage or are you looking to borrow more?

N20Y1D

herbiesjp wrote: »

You say you need £140k - is that the value of your current mortgage or are you looking to borrow more?

140k is the value of our current mortgage.

May look to add fees and also pay off any debts.

herbiesjp

Well if you are not increasing your mortgage amount, just ask you current lender for a new deal that you can move on to.

They do not normally require any underwriting when you come to the end of your current deal, so that may be your best option

luckyfool

As Herbiesjp says Nationwide should offer you something. That would certainly be the simplest route. Otherwise you are looking at about 5.5* your salary, a number of lenders would consider that if required.

N20Y1D

luckyfool wrote: »

As Herbiesjp says Nationwide should offer you something. That would certainly be the simplest route. Otherwise you are looking at about 5.5* your salary, a number of lenders would consider that if required.

Thanks, have arranged a meeting with nationwide. Will see what they say and in the meantime keep looking about.

Looks like my options with nationwide are:

Two year fixed rate (with £499 fee) available from: 6.08%
Two year fixed rate (no fee) available from: 6.48%
Two year fixed rate (with £999 fee) available from: 5.98%
Three year fixed rate (with £499 fee) available from: 6.33%
Five year fixed rate (with £599 fee) available from: 6.08%
Ten year fixed rate (with £499 fee) available from: 6.08%

Does anyone know when the BoE are due to announce the next predicted increase? as my meeting is scheduled for the 7th.......