Advice needed over remortgage.

lorriedriver1988

Hi. I am seeking advice over a remortgage. The situation is slightly complicated. Basically we currently own a brand new house worth £179,500 (bought in Nov 2013. The figures stack up as £35,800 on 20% shared equity, a mortgage of £80,999 and equity of £62800.
Due to a change in circumstances, I am expecting baby no 3 and due to health reason I have had to resign from my main job. This has left us with a dip income, projected income to be around £20,000. Unfortunately my husband's company are not prepared to up his hours anymore. I have been looking at our remortgage options on MSE's mortgage comparison and believed we could get a good deal. However, after going on to some of the bank website's it appears on our income the most they would lend us £29000. I am starting to panic whether we will be able to remortgage for the £80,000. So I guess my question is, should I pay any attention to the mortgage calculators on bank websites and what they are telling me? Any advice greatly received.

Leon_W

Yes you should pay attention to the calculators and you will not be able to remortgage to another lender. £80k on an income of £20k with four dependants is just not possible.


Ask your existing lender about retention deals they can offer you when your present deal runs out. There is no need for any credit or affordability checks.

ran123ran_2

who is your current lender?

lorriedriver1988

Thankyou for your replies. Are current provider is Halifax. Our current deal ends in December. I was hoping to fix our mortgage on a 10 year deal.

Leon_W

Luckily you are with a lender that offers OK retention deals, not brilliant, but OK. You'll find details on their website. Maximum fix at the moment is 4 years.


December is a long way off though so check deals in October.

kingstreet

Regardless of your income situation, you'll find it almost impossible to remortgage to a new lender with the equity loan still in place.

Your best best is a Halifax customer retention product, or Product Transfer in their language.

lorriedriver1988

Would I be in a better position for remortgaging if I got rid of the 20% shared equity before December?

kingstreet

Where's the £35k going to come from?

lorriedriver1988

I have a sum of around 60K tied up in various investments from an inheritance that are currently be transferred into my married name.


The only trouble is take months to process the paperwork necessary to release the funds. Additionally, I worry about the tax involved in withdrawing the 35K

kingstreet

If the equity loan is repaid it will be one less thing to worry about, but it won't solve your affordability issues mentioned earlier.

Beckyy

Would it be a viable option to pay off the equity loan, pay off a chunk of your mortgage then remortgage? Obviously it would use your inheritance but you're not going to be able to remortgage with your current income/LTV.

Another thing to check is what your house is currently worth, new builds are notorious for loosing value so you may have less equity than you initially did in 2013.