my mortgage problem

betterman0112

We have just sold our house for £103500 and made an offer of £90000 on a property which was accepted, so heres where the fun starts.

We have a mortgage for £37000 with abbey on our current property which we would like to move to our next purchase and we dont need to borrow any more money, but the problem is i am unemployed (my own choice, to raise our 2nd child) my wife has just finished with her previous employer to start a new job on monday 13th aug, she only works part time and the total household income is £15000.

So i phoned abbey to explain about this and to move my mortgage to next property, and they said no you wont be able to afford it on that income.

We currently have over 40k in savings with abbey and will be banking the money left over after the sale and purchase of these houses, approx £11000 after fees etc.
So we will have around 51k in accounts with abbey plus our home insurance and life insurance but still wont be able to have a new mortgage off them, what do i do now, my buyers are already pushing and my vendors want to exchange contracts by 26th aug.

We manage our mortgage payments easily and have no other debts so i dont want to use our savings to pay off the mortgage.

Any help or ideas greatly appreciated.

lynnexxxo

Why not use your savings to pay off the mortgage and be mortgage free?

You could always remortgage in a few years if need be.

Just noticed you say you don't want use your savings.

Would you have to pay early repayment charges to Abbey, if not just close the mortgage and go elsewhere.

Conrad

A tricky one.

Someone like N Rock might consider. Note state benefits are not usually taken into account with lenders.

The problem is lenders have signed up to the regulators 'responsible lending' initiative and many will view such lending as irresponsible.
Lenders will always have in mind Court proceedings; You will say to the Judge " they leant the money irresponsibly M'lud".

A quick glance at the debt boards here reveals many who bleat "it wasnt my fault the Bank should never have leant me the money"

poppy10_2

Just go for it and use your £40k savings to pay off the £37k mortgage and leave you £3k.

You are selling your house for £103k and will be able to buy the new place outright for £90k leaving you £13k profit.

So you can live mortgage-free for the rest of your lives and have £16k spending money. Sounds like an ideal situation to be in, don't make it hard on yourself by hoarding your savings.