Remortgaging, should we do a single application

wifeforlife

My DH and I are coming to the end of our 5 year fix (4.89) and need to re-mortgage. My DH earns four times more than I, however I've credit card debts of £14k, he has no debt at all.

In the last 2 years I've also had to reduced from working full time to part time which is why my debt remains higher than I'd intended.

I've been reading a lot about re-mortgaging and I think we may be best to have him only on the next mortgage to get the best possible deal, just wondering what anyone else's thoughts are?

Edi81

What retention deals are
Available from your existing lender?
Who is your existing lender?

mdori003

What's your LTV? You may well not need to do affordability checks depending on lender.

I'm sure you'll get a better rate than you currently have regardless, so that is good!

wifeforlife

The LTV is 66%, we're currently with Ulster Bank and DH wants to keep our monthly payment of £946pm to reduce the term rather than reduce the monthly payment

Looking at their deals with a term of 20 years there is a 5 year fix at 2.68% which is loads better than what we're on. Even the SVR is lower than our current rate.

DH's income is £56k, mine is £14k - no benefits or other income but we do have 2 dependants, no childcare etc. My debts will of course be an issue which is why I'm wondering are we safer getting a new mortgage without me being named or involved.

MovingForwards

There is nothing stopping you staying with the same company, fixing the mortgage and making over payments rather than trying to shorten the term; it will come to a natural end sooner by making over payments.

Assuming you are allowed to do so.

mdori003

I agree with moving forwards, you'd be as well checking with Ulster Bank what the overpayment system is, if there are early repayment charges over a certain amount (usually around 10% of total amount). Im not sure about Ulster bank but bank of Ireland automatically reduce the monthly amount instead of reducing the term when you overpay so worth clarifying that.

Still sounds like you are in a healthy position with good LTV and much better rates.

wifeforlife

Thanks so much guys for getting back to me I'll have a look and contact them to find out the overpayment information.

Do you think we're ok for a joint application or should my DH go for a sole one?

My DH is concerned any debt is bad and wants us debt free but its unrealistic for me in the time frame

Thrugelmir

wifeforlife wrote: »

My DH is concerned any debt is bad and wants us debt free but its unrealistic for me in the time frame

Why aren't you tackling the problem together?

wifeforlife

I created them so I'm paying them, he would pay them but it's not fair when he's so good with money and really frugal. He also pays the majority of the bills we split it by % earmings so I feel really guilty the effect my bad debt is going to have on him for the mortgage which is why I thought a single application would be better for him

robatwork

Just check with your bank they are OK with you living in the property but not being on the mortgage.

Some will want you to sign a letter to relinquish any interest in the house should the mortgage not be paid and they need to repossess.