Can't remortgage

garetheightfour

I am trying to remortgage, but so far have had four rejections (in principle). I am need to borrow 177k, but the most I have been offered is 170k. Two years ago I was able to borrow 185k, my wife now has a small salary (6k) and we have a good LTV of 63%. We have savings and no debt.

My current lenders deal is dreadful, is it worth booking appointments with other lenders or is this a waste of time if the online applications have failed?

ACG

First thing is to stop doing DIPs. They may involve credit checks.
Fill out the affordability calculators and see if it passes if that is the issue.

Could you maybe extend the term and then make overpayments?
But it is probably worth speaking to a Mortgage broker. Finding £10k is usually not too difficult to do on a Mortgage. So with some, it probably can be overcome.

Another alternative, have you spoken to your current lender about doing a product switch?

garetheightfour

I thought DIP do not effect credit?

We are at 28 years already, would be pretty depressing to increase this back to 30.

I have not spoken to the current lender, but they have offered a few options online, best one is £100 a month more + £1000 product fee, so really very bad. Can you get a better deal in person?

beefturnmail

Use some of the savings to overpay the current mortgage - then you won't need to borrow as much?

kingstreet

garetheightfour wrote: »

I thought DIP do not effect credit?

We are at 28 years already, would be pretty depressing to increase this back to 30.

I have not spoken to the current lender, but they have offered a few options online, best one is £100 a month more + £1000 product fee, so really very bad. Can you get a better deal in person?

DIPs with hard credit searches attached will. Which were yours?

The term is only going to count for a few years until you remortgage again, or move house. Then you're going to look at it again.

No. You won't get a better deal in person than you will online. The lender's customer retention products are there for all.

Did your wife's reduction in income coincide with anything else, such as childbirth? Are you losing borrowing power due to reduced income and a(nother) dependent?

ACG

The DIP may not affect your score, but it just as easily may. If you do not know who does hard and soft footprints then it is best to avoid them all together. But aside from that, it is probably quicker to do the affordability calculators anyway, so makes more sense to try them.

Extending the term is only being done on paper. If you extend the term to 30/35 years but over pay and bring your payments up to what you would be doing on a 28 year term, then you are still for all intents and purposes on a 28 year terms - although, the way lenders view overpayments can vary, so important to make sure this is allowed by the lender.

garetheightfour

My wife's income is not a reduction, but a benefit. She was not working last mortgage, this is why I am surprised I am getting rejected, for asking for less money than last time (177 vs 185).

Good tip about increasing the years and over paying, thanks.