Moving house mortgage remains the same...problems?

missminx007

Hi all, some advice would be wonderful. We currently have a mortgage with Natwest for £90,000 on our current which has been active for 11 months. We have inherited £50k and have seen a property we would like to buy, the mortgage amount would remain the same.
Here comes the complication, my husband is self employed and had a bad year last year due to personal circumstances, we have kept up mortgage payments, no issues there.
How would this work? Would they reassess him? Also, the value of the new property would be higher so theoretically the money would be safer!
He seems convinced we are doomed, I am a little more optimistic

kingstreet

It's a new application and it will be affordability checked and credit scored as such.

If his income no longer supports the current level of mortgage, you won't be able to borrow that much again.

Thrugelmir

New mortgage . New Application. Full checks.

missminx007

Oh bother, this was what I was worried about. Is it the same with all lenders?

Leon_W

Yes it is.


Although nobody has ever given me a satisfactory answer as to why this should be. They've already lent you the money, and if everything stays the same and you aren't borrowing more, then why can't you just switch the security address ?


As in your case, the lenders security is greater so why it shouldn't be a rubber stamp job is beyond me.

martinsurrey

Leon_W wrote: »

Yes it is.


Although nobody has ever given me a satisfactory answer as to why this should be. They've already lent you the money, and if everything stays the same and you aren't borrowing more, then why can't you just switch the security address ?


As in your case, the lenders security is greater so why it shouldn't be a rubber stamp job is beyond me.

Because if they now think you can’t afford the repayments why would they allow or encourage you to spend money on fees to move house rather than repay the mortgage.

Just imagine it in 5 years when someone goes broke

Person "I was allowed to move house by my bank when I couldn’t afford the repayments, I spent £10k on fees and stamp duty, If I hadn’t been allowed to move I would have been okay... COMPO CLAIM"

Unfortunately we don’t live in a world of personal responsibility.

in the OPS case they could pay the £50k off the mortgage and only have £40k oustanding, or the bank could let them move and they would have a £90k mortgage they cant afford (in the banks eyes).

dimbo61

Plan B
Check if you can overpay the current mortgage ? Is it fixed?
If so then overpay as much as you can this year.
Fill an ISA each and look at regular savers each month.
Rest in instant access account.
Look at ways to reduce costs ( New cheaper to run car !!)