Mortgage advice.

FollyKnockers1

My husband (because of my past stupidity and not so great credit rating - late payments due to previous DMP) applied for our mortgage with his father for our first home. Successful. Great! But due to his fathers age - it's over 15 years.


Now we are married, I cleared the DMP debt (my mum very kindly got a loan out for me which I pay back monthly by Standing Order)


The fixed rate for our mortgage is up in 2 years and I know it takes 6 years for my file to become acceptable.


My questions is, if my husband is unable to borrow enough on his own salary to cover the re-mortgage and lengthen the term (His salary is £29k, house value is £240k, we put down 5% deposit (newbuy) and borrowed 199k, our mortgage payments are £1,525 a month)


We are thinking of ending the mortgage early and suffering the redemption fee (6k) to lengthen the term to free up some cash before starting a family.


Would the equity in the house help?


If his salary cannot cover the mortgage, if they wont re-mortgage with his father, and they wont remortgage with me too, how are we going to re-mortgage?


thank you

Thrugelmir

FollyKnockers1 wrote: »

My questions is, if my husband is unable to borrow enough on his own salary to cover the re-mortgage and lengthen the term (His salary is £29k, house value is £240k, we put down 5% deposit (newbuy) and borrowed 199k, our mortgage payments are £1,525 a month)

You are going nowhere based on these figures. Sorry to be blunt. However you really need to get to grips with your finances.

pjread

maybe I'm misreading, but you're paying about 4.5% on 95LTV then? Have you checked what rates are actually available, there might not be much better out there?

200k loan on 29k income, I would be absolutely amazed if you could sort anything out legitimately... Best bet is to chat to a decent broker, but be prepared to hear there's nowhere to go.

getmore4less

what's your income?

your lender may have retention auto offers to move to without needing a re mortgage or checks.

FollyKnockers1

"You are going nowhere based on these figures. Sorry to be blunt. However you really need to get to grips with your finances"


Really helpful.


Apologies if my OP was confusing. I am obviously not very clued up when it comes to mortgages hence me coming here and asking for advice.


My husband and his father have the mortgage in both their names.

When the fixed rate is up we wish to re-mortgage and hopefully I can go on as a second applicant. I earn 22k.


If I cannot be included as a second applicant - I am wondering the worse case scenario. If Barclays wont re-mortgage and I cannot be added & if husband cannot be a single applicant due to not earning enough- what would happen? Our mortgage is over 15 years due to father in law's age.


We wouldn't be re-mortgaging for though would we. As that was the original mortgage amount.

Foxy-Stoat_3

Worse case, you go from the fixed rate to their variable rate in 2 years time and your mortgage is paid up after another 13 years. You should start to over pay, or save as much as you can NOW as in 2016/2017 who knows where the interest rates will be.

Do you have an exit strategy for removing the Father in Law's name off the mortgage and title deeds at some point in the future?

getmore4less

When the fixed is up you just carry on the follow on rate.

Check yours not all Barclays were their SVR(3.99%).

here is a link to Barclays current existing customer information
http://www.barclays.co.uk/Mortgages/Existingmortgagecentre/P1242597222683