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Preparing for mortgage renewal
ani*fan
Posts: 1,554 Forumite
Hi everyone
It's slightly over a year until our 2 year fixed rate ends and our circumstances have changed considerably so I wondered if you lovely people could help us figure out a strategy for the best deal at that time.
The changes are that I have handed in my notice at work and will be ending in a month's time. I am going self-employed on a f/t basis and have already started work in this area for 7 hours per week, upping our income for the few months overlap. I'm putting this money away for when things are tight as when my current job ends there will be a dip in income for a while.
When we got the mortgage, we both earned £30k and the mortgage was for £152,000 on a £160,000 property. I tried to check the outstanding balance today but it's with TSB so I couldn't access.
I am thinking that my wage will not be taken into consideration for a mortgage. I do however have one contract already for a day's work with a local authority (on a self- employed basis). The contract says they or I would need a month''s notice to end the contract. Would this count in some kind of way for mortgage calculation purposes?
If my wage is not considered at all, and it is likely that it won't, then OH's wage alone would not (I don't think) be large enough to cover the outstanding mortgage amount. LtoV on the property has increased massively as we have had it rewired, new windows, new boiler, new front and back door and redecorated throughout. The mortgage will be roughly £148,000 and the value at least £180,000. Would this have any impact on how much cash could be borrowed?
I'm wondering if we would do better to overpay the mortgage as much as possible between now and then, to try and make it small enough so we can remortgage just with OH's wage, that is likely to remain the same, rising by no more than £1.5k if we're very lucky.
What do you think? Thanks in advance for all of your help.
It's slightly over a year until our 2 year fixed rate ends and our circumstances have changed considerably so I wondered if you lovely people could help us figure out a strategy for the best deal at that time.
The changes are that I have handed in my notice at work and will be ending in a month's time. I am going self-employed on a f/t basis and have already started work in this area for 7 hours per week, upping our income for the few months overlap. I'm putting this money away for when things are tight as when my current job ends there will be a dip in income for a while.
When we got the mortgage, we both earned £30k and the mortgage was for £152,000 on a £160,000 property. I tried to check the outstanding balance today but it's with TSB so I couldn't access.
I am thinking that my wage will not be taken into consideration for a mortgage. I do however have one contract already for a day's work with a local authority (on a self- employed basis). The contract says they or I would need a month''s notice to end the contract. Would this count in some kind of way for mortgage calculation purposes?
If my wage is not considered at all, and it is likely that it won't, then OH's wage alone would not (I don't think) be large enough to cover the outstanding mortgage amount. LtoV on the property has increased massively as we have had it rewired, new windows, new boiler, new front and back door and redecorated throughout. The mortgage will be roughly £148,000 and the value at least £180,000. Would this have any impact on how much cash could be borrowed?
I'm wondering if we would do better to overpay the mortgage as much as possible between now and then, to try and make it small enough so we can remortgage just with OH's wage, that is likely to remain the same, rising by no more than £1.5k if we're very lucky.
What do you think? Thanks in advance for all of your help.
If you know you have enough, you're rich. 
0
Comments
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A customer retention product from your existing lender sounds like your only option. Can often be done online, without advice and subject to no income/status checks.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Thanks kingstreet. I did suspect that may be our only option, unless we whack the mortgage down considerably between now and then, and/or OH gets a big pay rise.
I appreciate the info.If you know you have enough, you're rich.0
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