Renewing mortgage

debpeb

I'm about to renew my mortgage and due to changes in mortgages i've been told by a different company to the one i'm with that as I won't be receiving tax credits after August it will be difficult for another company to offer me a mortgage despite me owning 3/5's of the property because my wage is so low. The repayments my existing mortgage company are offering are lower than before due to interest rates being lower than 5 years ago but i've been informed I will probably only be able to get a mortgage with my current mortgage company due to these new regulations in place. Is there any way round this so I can get a better offer elsewhere or am I stuck with my current provider?

themull1

If you dont earn enough to get a new mortgage, you will be stuck with your current provider.

debpeb

Thanks, I was dreading that answer. Daft thing is when one company rang me just on the off-chance they said i'd get a better deal if I could prove I have more money coming in. Just doesn't make sense. Looking at the deals it looks like i'll be paying approx £50 extra with the same company and others because I can't prove on paper I have a better income???!!!!

ethank

Unfortunately if you do not meet the income rules to support the lending, then no lender will offer you a mortgage for the amount. Affordability is one of the key things they have to review now.

Which mortgage lender are you with? You could ask them for their best rate?

kingstreet

Ask your current lender about customer retention options which may be available to you.

debpeb

That's the daft thing though, I can actually afford the better offers easily but they won't offer me these offers due to a lower income. I feel like I'm banging my head against a brick wall because lenders are saying I can't afford one figure, my own mortgage company is prepared to offer me one £50 dearer a month and they say I can afford that. It's no wonder people can't get onto the property ladder. A few years back I asked for an extra £4k on my mortgage to pay off debts and they told me I'd be paying an extra £16 a month but turned me down saying on paper I couldn't afford it. I ended up going to my bank for a loan and they said I could have it paying £100 a month. No wonder people are downhearted with it all

Thrugelmir

debpeb wrote: »

That's the daft thing though, I can actually afford the better offers easily but they won't offer me these offers due to a lower income.(

Lenders will be assessing your application on the basis that interest rates could easily rise back up to 7%. The current low levels are abnormal and people have become too comfortable with them.

debpeb

That's what I can't get my head round, if another company can offer me a cheaper deal surely I'm less risk when the rates do go up? Let's hope I win the lottery before my renewal date comes up