Lots of equity but unable to remortgage enough

ohdear66

Hi we have a mortgage of £156k over 27yrs and house valuation was £360k yesterday. We have credit card debt of £26k and loan of £10k. Income is £25k self employed and £21k employed. We want to remortgage to clear the credit cards as we used them to fund our loft conversion which has added value. We also have 3 children which I know knocks our affordability down. We don't seem to be able to get a lender to want to lend us that amount even though we have £200k equity. Please can anyone advise?

amnblog

You are talking to the wrong lenders.


Have you been approaching lenders direct or have you engaged a mortgage broker?

TrickyDicky101

Are you basing the valuation on what you think the property is now worth or what you paid for it (which was presumably quite recent given you still have 27 years to go)?

ohdear66

We have been inputting details online and using affordability calculators. Barclays said they can but want to increase the term up to 35yrs.

amnblog wrote: »

You are talking to the wrong lenders.


Have you been approaching lenders direct or have you engaged a mortgage broker?

ohdear66

We bought the house in September 2006 for £216k and now worth £360k our current mortgage is £156k

TrickyDicky101 wrote: »

Are you basing the valuation on what you think the property is now worth or what you paid for it (which was presumably quite recent given you still have 27 years to go)?

ohdear66

Sorry I mean 26yrs to go as I was reading my september statement which said 27yrs 1month

Thrugelmir

ohdear66 wrote: »

We have been inputting details online and using affordability calculators. Barclays said they can but want to increase the term up to 35yrs.

So what's your issue with this offer.

ohdear66

I was made to think that it would be silly of me to add another 9years back onto my mortgage or is that no so? (by family)

Bad_Ash

ohdear66 wrote: »

I was made to think that it would be silly of me to add another 9years back onto my mortgage or is that no so? (by family)

Pick a mortgage product that allow you to over pay, that way even if your term is 35 years you could still pay it off in 26 with the over payments. Obviously this does take some discipline as it's easy to pocket and spend the amount you initially planned to overpay.

dimbo61

Taking Barclays as they have offered you a remortgage ( not sure who your current lender is!)
£156,000 + £26,000 + £10,000 + £999
£193,000 mortgage at 2.99% ( Ten year fix at 2.99% fee £999) over 35 years is £741.68
Now this mortgage as with most fixed rate deals allows 10% overpayment each year so overpaying to reduce the term to
26 years would mean £891 a month
Not Advice just gives you an idea of how much it would cost to take the fix over 26 years.
Guess you are paying a whole lot more than that now?

amnblog

ohdear66 wrote: »

I was made to think that it would be silly of me to add another 9years back onto my mortgage or is that no so? (by family)

Nonsense, it doesn't work like that.


Get yourself some advice from a professional and stop trying to sort this yourself.