Struggling to remortgage

Littlemouse75

Really frustrated as struggling to remortgage.

Current mortgage is £68k on SVR. House value £275k. Currently have only 5 years left. Monthly around £1,250.

Want to release some equity, so would like new mortgage of £120k, happy to extend to 12 years if necessary. Preferably on fixed term 2/3 years. Mortgage calculators suggest this would bring monthly to around £900. So we release equity and have less monthly to pay.

H debt is loan with about £8k left. Salary around £52k
My debt is loan with about £9k left and car loan with VW finance £21k - so totally £30k. Salary around £39k

Experian comes back at 999, Noodle at 640 for us both. Never missed any payments. Credit cards paid off in full each month. Only joint account is about £2k OD.

We own/run our own company. So while we are employeed, officially we count as self-employeed. So we can only assume the mortgage companies are looking at the company we own. Does this come into it?


Other point is school fees. We pay £1,700 month for 2 children. Oddly this does not show up on any credit reference, even though we pay monthly. This has been the same for past few years, so just something we have lived with and adapted into our spending. (discussion is not about school fees or amount, but obviously something to be considered in outgoings)

Lenders say no based on affordability. Yet releasing equity would reduce monthly and let us get rid of some loans.

Any suggestions on where to go now. We tried to remortgage at end of fixed term 14 months ago and told no. Trying again now and even broker having difficulty. Even broker has failed to find anything after 4 weeks. Got close with one, then turned down. He/we have looked at credit reports and dont know what else to do.

ACG

Forget the profit/loss of the company, what are you declaring on your SA302s/Self assessments in terms of PAYE and Dividends is applicable?

Excuse the bluntness (im full of a cold and a bit grumpy) lenders are not interested in your current payments. They are interested in you passing their affordability rules as of today. With £1700 a month childcare that means your combined incomes are going to need to be above average, especially whn combined with a 12 year term mortgage.

If you default on your new mortgage, then you could argue the lender was irresponsible. If you default on your current Mortgage, you have nobody to blame as your circumstances and commitments have presumably gone up since taking out the mortgage.

Also, lenders are assessing your income on a rate of around 6-8% not the actual rate payable.

Littlemouse75

SA302 -
H £52k
Me £39k

Our circumstances have not changed since we last mortgaged - but that was 6+ years ago. we did 5yr fix and then found we couldn't remortgage after! But in that time the way they calculate mortgages has.
At least in 12 years time, kids no longer at school.

BoGoF

Again, the lender is not interested in your financial position in 12 years time. Right now you are paying £20,400 a yesr in childcare.

Add on your monthly loan repayments (you didnt say what these were) and its easy to see why you are not an attractive proposition to a lender

BoGoF

Oh and never noticed the £2k od when I first read your post. Why on earth do you have od account?

somethingcorporate

£40k unsecured debt and £20k annual childcare costs (and likely to rise substantially...?) ....need I say more?