Completely stuck - remortgaging comes down to earnings, nothing else! Help please!

grholden

Hi,

In a nutshell, my ex has moved out and moved back to his family.

After a few weeks of firstly hating the house we live in together, I have now grown to like it again and really, really wish to stay here.

The problem is inevitably remortgaging. I had a meeting with the Halifax this morning and they told me that, unfortunately, even though my parents (who have a £250K property that is completely mortgage-free, capital to throw my way etc) that it all rests on my earnings which are just below £30K, thus the most they'd lend would be around the £150K mark.

We bought the house for £240K about 2 years ago (just over), there is about £212K left on it.

Unfortunately, making up the shortfall from £150K to £212K just isn't an option.

I could afford to keep living here - I have worked everything out. It's such a shame so far. But the Halifax didn't want to know.

I can't keep him on the mortgage either as, correct if I'm wrong, he would need to be off this mortgage in order to get another one in due course.

To cap it all, we only just went onto a new mortgage deal a few months ago and, therefore, we are tied into two years and the fee to come out of it would be £6K! To be honest, paying the £6K wouldn't be an issue, but it's the 'getting the mortgage on my own' that seems to be the sticking point.

Completely horrendous situation and I am sincerely grateful for any feedback.

Thanks.

grholden

Sorry, it's also worth noting that we have a second property with about £12K shortfall in equity too - that is currently rented out.

Thrugelmir

grholden wrote: »

Sorry, it's also worth noting that we have a second property with about £12K shortfall in equity too - that is currently rented out.

This mortgage will also be factored into any decision.

The Halifax would be in breach of regulatory guidance if it allowed you a mortgage of £212k on a £30k income. While it may be ok now. The future may well not be so certain.

Is moving back into the second property an option? Using the released equity to restore a positive LTV.

grholden

Thanks for your response.

Unfortunately, we have a few debts that would eat away at the equity we have in this property - also, we have a tenant in the other house, she has just signed a new 12 month contract.

Could an option be to rent out this property too?

grholden

Just looked into renting it out and they have said that, as long as both properties are rented out at 125% of the mortgage repayments that they wouldn't be factored into any new mortgage applications?

ACG

You want to rent out a property you like and currently live in? Some lenders will have issues with this.

Realistically your not going to get beyond 5x your income as a maximum. Depending on the age of parents you may be able to get one of them to come on to the mortgage with you - but their age may impact the term.