Struggling to remortgage

andys15

I currently owe £180k on a house valued at 325k to £335k. We have lived here since 2008. We have done major renovations to the property downstairs. Extensions, conversions, walls knocked down, etc etc. All this has been done via personal loans as I always assumed we had no equity, due to buying during the credit crunch.
The debt which has never caused any problems and have been overpaid, equal £73000. It is clear where the money has been spent, and it is also clear in the recent valuation that some of the work has obviously counted towards the higher valuation. I am currently on a tracker mortgage, at 1.49 above the BOE rate. My mortgage currently has about 9.5 years left and I repay £1693 a month. I want to go fixed as the interest rates are historically amazing.

The remortgage I want to do is over 9 years, with Virgin fixed for 5 at 2.79%. I want to up my mortgage to 260k. This will be a mortgage of £2719 pm. ( I will pay it all off after 7).

My take home pay is £4911 and ,my wife's pay is £2976. After all bills are paid we have over £4k left a month. So why has my AIP been referred and also my affordability was referred.

I appreciate debt is high, but it's been spent on the house. I have been in lots of debt before, but that was as I was climbing the wages. Always been paid off in full and early and never missed, ever.

The actual new new mortgage would about 1.5 times our joint income, or 2.6 times my sole income.

andys15

When I type our wages into the banks affordability calculator. It states I can get a mortgage for upto 680k. I did it with tesco and state I pay 6k towards loan and bills( reality about 2k) and it said they would lend me £260k. That's without paying any debt off and tripling my outgoings)not including mortgage as it states).

andys15

Yep. I got declined. It's crazy. £150k combined income and rising in November and cannot get a £260k mortgage.

somethingcorporate

Use a broker, evidently there is something causing the referal and decline.

We had something similar earlier in the year with nationwide. Going on their website they would lend us £450k, we wanted to extend our £230k mortgage by a modest amount and they referred and then declined.

I'll be taking my business away as soon as the fix expires!

andys15

Cheers corporate. That's with a broker. She suggested we try TSB through her. I might just knock it on the head.

somethingcorporate

I'd perhaps consider another broker then - there probably isn't any harm in giving it one more go - especially since your figures obviously look workable.

andys15

We have been approved in principle with TSB. After all debts are repaid(all debts are from the house). We are left with almost 4k a month, after all bills are paid. And our affordability was referred and we failed with virgin 5 year fixed. It just seems crazy. My mortgage provider (bank of Ireland) wouldn't touch me. I could understand if the debt was through recklessness or we have missed a payment or two, but the debt was manageable and never missed, Infact has been overpaid.