Remortgage Help

Elkina

Hi all

I'm currently a Homeowner 30 years old with no mortgage its worth £75k and i'm hoping to remortgage this to buy my mothers property that is worth £80k but ill be buying it for what she owes £39k.

Now i have had to go to a IMA as unknown to me i had a CCJ outstanding from a phone bill 10 years ago. I have know settled that.

I'm also self employed in the Rail Industry and have a 0 hour hour contract but can provide 4 years of payslips earning over 20k+ per year.

I have had 1 offer to grant me a mortgage but with a £2000 acceptance fee because of my 0 hour contract, the mortgage comes out at £288 over 25 years for a £41k borrow.

Does this sound correct, i'm struggling understanding how they can ask for a £2k fee because i'm a risk when ill have £155k in property and only a mortgage for £39k?

kingstreet

If you are unhappy with the terms offered, ask your broker if better terms are available.

If not, perhaps another broker should be your next port of call.

As the commission on a £40,000 mortgage will be in the region of £140, expect to pay a broker fee of some description.

Elkina

kingstreet wrote: »

If you are unhappy with the terms offered, ask your broker if better terms are available.

If not, perhaps another broker should be your next port of call.

As the commission on a £40,000 mortgage will be in the region of £140, expect to pay a broker fee of some description.

I don't know if i'm happy with it or not yet but what i'm asking is why would they ask for a £2k acceptance fee because of my 0 hour contract when ill be ending up with three time more equity than the mortgage?

I know ill have to pay the broker a fee but this £2k charge is from the mortgage lenders.

Thrugelmir

Is your mother remaining in the property?

Elkina

Thrugelmir wrote: »

Is your mother remaining in the property?

Yes i'm renting it to her for £200 her current payments are £460 till shes 72 currently 60 old years now,she cant afford this and is losing money each month she will be staying in it till she decides to leave.

kingstreet

The lender is charging what it feels is appropriate for the facility/service it is providing.

When you ask why, I find myself unable to answer with much different to "because it can."

As I said, look for an alternative source of lending/broker if you decide you are not happy.

amnblog

We have a CCJ. A Concessionary purchase with, I assume, no cash deposit. Is mum staying in the property? Zero hour contract.


A complex case.


It is likely there are no other options out there anyway.

David_White

Why are they classing you as a risk?

You have a CCJ, you are on a zero hour contract and you're purchasing a property with gifted equity which means that you've not shown that you can save for a deposit.

I'm not saying a better deal isn't potentially out there, but don't be fooled into thinking lenders should be tripping themselves up to give you a mortgage.

Elkina

David_White wrote: »

Why are they classing you as a risk?

You have a CCJ, you are on a zero hour contract and you're purchasing a property with gifted equity which means that you've not shown that you can save for a deposit.

I'm not saying a better deal isn't potentially out there, but don't be fooled into thinking lenders should be tripping themselves up to give you a mortgage.

Gifted equity? I have paid the house i live in off which shows that i can more than save for a deposit..and a deposit with a remortgage?

Credit ratings baffle me, i have never had a credit card never had a loan usually if i don't have the cash i do without i never even knew i owed on this CCJ from 10 years ago till i did a credit report and i satisfied instantly, i have paid my house off in 6 years but i'm a risk to lend to??

Elkina

amnblog wrote: »

We have a CCJ. A Concessionary purchase with, I assume, no cash deposit. Is mum staying in the property? Zero hour contract.


A complex case.


It is likely there are no other options out there anyway.

Concessionary purchase i don't think is as my current house that i own mortgage free is what i am remortgaging then ill buy my mothers after the mortgage has gone through.

Yes she is staying in the house for as long as she wants.

Thrugelmir

Elkina wrote: »

Concessionary purchase i don't think is as my current house that i own mortgage free is what i am remortgaging then ill buy my mothers after the mortgage has gone through.

Yes she is staying in the house for as long as she wants.

Why not simply pay the mortgage.

Lenders may well have an issue with your plan.