Porting My Mortgage With Low/ No Income?

dmg24

I am considering moving house, to a cheaper property (and one with no service charge!). However, at the time I move I will either have no income (for health reasons), or a low income (a £9000 tax free bursary).

My mortgage is with Alliance and Leicester, and I shall be moving within the ERC period. However, I understand that the mortgage is portable?

My current property is worth approx £125K, and my mortgage is for £90K (I am one of the few lucky people who has a new build apartment that has increased in value).

I am looking at properties around £95K, but would like my mortgage to be approx £70K.

Would A&L allow me to move my mortgage? I have not missed any payments for the eighteen months I have currently had the mortgage.

If they would allow me to move my mortgage, would they allow me to change (lower) the amount?

Alternatively, any nice young (or not so young) men would like to come and live with me?!

Thanks in advance for any advice on my late night ramblings! x

Lipstick_2

I would put off moving, as your income is not sufficient to satisfy the loan amount.

dmg24

Thanks Lipstick,

Unfortunately, staying here is not an option, and it is a case of moving or selling up (I am unable to work due to health problems, and due to it being a pre existing condition I am not covered by payment protection).

Would I be able to have a guarantor on the same mortgage product, or transfer the mortgage into someone else's name (or put the mortgage into joint names)? Would this just make it far too complicated, and would it in effect be easier just to cut my losses and start again with a new mortgage in my parent's name?

As I am staying with the same lender, will they actual check my income? I have a friend who is with A&L and they didn't verify her income when she moved (she is also now on the PGCE course). I am aware of the legal implications of this, but just wondered about the implications on a practical level?

I have looked at renting in the short term, however I have a cat and would find it very difficult to get somewhere. Also, the rent would be more than my current mortgage!

Thanks again x

david29dpo

When porting a mortgage, some lenders insist its for the same amount or more, not less.

dmg24

Thanks david29dpo, things are looking a great deal clearer this morning. Hopefully I'll find a way to stay, as it really is my dream home (and the cat likes it too!) x