Remortgaging woes, is it just me?

dojj

First up, I'm new so if this is in the wrong place don't lynch me
Cutting a long story short, when I first applied for my mortgage the property was worth £280k, I was borrowing £180k and the joint income was £60k per year
Roll forward 10 yearsyears
The property is with £400k+
The mortgage is down to £116k
Joint income is now £40k per year
But now I don't earn enough to afford to get the new mortgage, even though I can afford to pay the higher rate I'm now on
An I the only one or do I need to find a better broker?

Thanks

Caz3121

£116k mortgage on £40k income should not be too difficult as is less than 3 x income and under 30% LTV
do you have dependents, existing debt?, self employed? this could be down to affordability rather than the multiplyers
No deals from your current lender? Where has your broker tried?

amnblog

Sounds like there is more to this that you have outlined.


Unsecured debt?
Extraordinary outgoings?
Current age?

dojj

Nope, nothing else, currently paying £930 a month so you can imagine saving £200 a month for the next 15 years
Apparently the most I can borrow is £107k wherever I've looked which is why I've come here after months of looking, having to get an appointment for a Saturday because that's the only thing I can get off, it seems easier to simply pay the higher rate for a few more years

Thrugelmir

dojj wrote: »

Nope, nothing else,

Dependents?

dojj

Originally I was earning £30k and my brother was earning £30k so £180k was doable
Now I'm earning £21k and the Mrs £19k
I'm 42, the wife is 38 and two kids
No debt other than the mortgage, never missed a payment etc no other credit other than one credit card that owes me £9.20
Does that make me a bad risk then?

SandC

Is your mortgage still with your brother and not your wife? It's not very clear as you don't mention at what point in the 10 years you sorted that out with your lender? I would imagine it's a sticking point if circumstances have changed. Hopefully someone who knows more can point you in the right direction.

dojj

The issue seems to be that removing my brother from the mortgage and adding my wife means that I can't now afford the lower repayments according to the computer, £700 a month in some cases vs the £930 I'm currently paying
I've put this to the current provider but it would seem to me that they don't want to be losing out on the extra income
Been on the phone to them just now and overpayments means that I've gone from having 15 years 1 month left to 13 years 7 months which I'd some good news I suppose as it's not only saved me 18 months but also £6,740 overall

libf

dojj wrote: »

The issue seems to be that removing my brother from the mortgage and adding my wife means that I can't now afford the lower repayments according to the computer, £700 a month in some cases vs the £930 I'm currently paying
I've put this to the current provider but it would seem to me that they don't want to be losing out on the extra income
Been on the phone to them just now and overpayments means that I've gone from having 15 years 1 month left to 13 years 7 months which I'd some good news I suppose as it's not only saved me 18 months but also £6,740 overall

Then can you not leave things as they are and take a retention deal with your current lender to reduce the payments? Seeing as how your brother will need to remain on the mortgage anyway...

getmore4less

Don't forget the CGT assement.

Thrugelmir

dojj wrote: »

The issue seems to be that removing my brother from the mortgage and adding my wife means that I can't now afford the lower repayments according to the computer, £700 a month in some cases vs the £930 I'm currently paying

That's not how it works. Lenders base affordability assessments on 7% interest rates.