Want to re-mortgage but there's a twist......

Lee_theFirst

Hi


I want to re-mortgage but in my current situation it is not so straight forward and I am hoping someone may have an answer/advice -


Background info on myself and situation;


36yrs old.
Male.
Living with my partner Amanda in the midlands area of the UK.
1 child currently 8wks old.
Self-employed but have recently dissolved my business due to financial reasons (accounts show no profit and very low income for myself) and the work involved working away all over the UK. Plan to start a new business within the local area, aim to start April 2015.


I own the property I live in, 3 bed semi.
Mortgage of £92,000 over 28yrs remaining.
Current value £130,000.
Current mortgage payment is £553 (repayment & capital).
Only myself on the mortgage.
I was made redundant in 2009 which led to going self employed but have never had solid accounts or profit.
Current mortgage with Leeds Building Society on their Variable Standard Rate 5.69%
I have been with Leeds from day one and have never used a mortgage payment, even when made redundant and receiving benefits.
I have two unsecured loans with Santander approx. £8,350 & £3,125. At present I am on a payment plan of £1 PCM.


My partner;
Owns a house which she rents out.
Mortgage of £55,000 and current value of £80,000
On maternity pay until July 2015.
Employed earning £18,000 as a dental nurse.


Our current income is statutory maternity pay (approx. £550 per month) £80 child benefit, and £290 child tax credit.


My question is this..... can I re-mortgage in my current situation as I believe the interest/mortgage payment to be rather high. I am happy for my partner to be a named person on the mortgage.


I appreciate I have wrote an essay but any help/advice will be greatly welcome.


Many thanks & merry Christmas


Lee

dimbo61

First the good news! Leeds cannot kick you out of your home as long as you pay the mortgage!
NO Income means no other Lender will consider you so you have to stay with Leeds.
Now if you are not borrowing any more money can you go online with your Members Login Number and see how much you owe and what deals they have for existing customers?


http://www.leedsbuildingsociety.co.uk/mortgages/changing-your-mortgage/


Maybe give them a call BUT be very careful what you say!
I have a mortgage with LBS and owe £XX,XXX amount what deals do you have for me as an existing customer.
Try not to give any details of current situation just making general enquiry !!!
See if you can swop onto better deal Online and register for online banking. Think long term and NOT 2 year deals.
Partner may not return to work so 5 year fix might help

Lee_theFirst

Thanks for the advice.


I will give them a call tomorrow and see what they say.


I will post an update but I have a gut feeling they will want to see recent proof of income.

the_matrix

Without solid income and accounts you can't get a mortgage as they consider you high risk.

Thrugelmir

Lee_theFirst wrote: »

At present I am on a payment plan of £1 PCM.

Interest rates reflect the perceived risk of default. The above is a clear indication to any lender how fragile your finances are.

Lee_theFirst

Even tho, on paper I look high risk and have not had strong accounts/income for 4yrs but yet have never ever missed or made a late payment on my mortgage?

Thrugelmir

Lee_theFirst wrote: »

Even tho, on paper I look high risk and have not had strong accounts/income for 4yrs but yet have never ever missed or made a late payment on my mortgage?

You've missed contractual payments on another finance agreement. That's all a lender needs to know. Lenders can choose their customers. As there's a finite amount of money to lend.

amnblog

Lender are pretty picky about having to prove an income and prove you can pay your debts Lee.


You are fortunate to have been able to maintain your current arrangement.