Sub prime mortgage needed

rachelleigh73

Hi

Following bereavement and ill health our household income has dropped significantly during our mortgage term. Our current mortgage deal is due to end this summer. We owe £160,000 on an ex-council property valued at around £325,000 and our annual income is now just £30,000 pa - which is the combined income of the two mortgagees - one of whom has just turned 70. We have maintained mortgage repayments despite our change in circumstances.

We are initiating contact with mortgage brokers and IFA's to get their advice on if there is any way in which we can can continue to stay on in our family home - we have two small children.

It would be great to get some positive thoughts and ideas on our situation - to brainstorm any potential solutions that we haven't thought of.

With thanks in anticipation

Rachel

ACG

Even if the eldest applicant was say 30, meaning a 25-30-35 year term was available I do not think this would pass affordability.

I think the only option is an equity release mortgage, but that assumes both applicants are over 55(ish) and when they both pass the property is taken to be sold off and pay for the mortgage.

I can not see you being able to get a conventional mortgage for the amount needed.

plane_boy2000

Rachel - are there no products you can switch to with the existing lender?

Iv'e just done this with BoS - they insisted in taking me through affordability which proved I couldn't afford the mortgage, and then let me switch to a better rate. Being BoS its not a fantastic rate, but much better than the SVR I was on

rachelleigh73

Thank you for the feedback so far. Any other thoughts - any other sources of lending we might qualify for?

Many thanks

csgohan4

Customer retention products done online do not need credit checks, they maybe one option

Rileybaby

Have you spoke to your lender to see if they can offer anything? When you say your mortgage is ending do you mean the fix is ending or its ending full stop and you need to find £160k to stay in your family home?

rachelleigh73

Csgohan4 - thank you - I'm wondering if you could explain a little more about what you have in mind?

Rileybaby - thank you - the mortgage is ending full stop. It's with Kensington who initially said they would not consider an extension. I've spoken to them again who tell me they are acting on behalf of GE Money and that we can put a case in writing but that an extension is unlikely.