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Remortgage worry after cut in salary

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Remortgage worry after cut in salary

edited 30 November -1 at 1:00AM in Mortgages & Endowments
11 replies 916 views
gingerborisgingerboris Forumite
18 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi

Our current mortgage deal is up in January. Since the last time we remortgaged we’ve had a baby and I’ve returned to work part time. A reduction in salary of 16k. My husband and I have a combined salary now of 35k. Our debt position is now also much worse and totalling £30k! I’m really worried about if we will be able to get a remortgage offer, or if we’ll be repossessed.

We currently owe 160k of a 200k mortgage.

Just wondering if anyone has been through anything similar and advice about where to start. Not sure whether to approach current lender first or get some advice from s mortgage advisor.

My other worry is that even if we do get a new deal we will still have no disposable income so there’s a risk out debt will increase further.

Thankyou for reading. Any advice is greatly received.

Ginger
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Replies

  • julicornjulicorn Forumite
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    Most lenders offer retention deals without any credit checks. We just got one last weekend with just a few clicks in our online account.
    Maybe you get let us know your current lender, so others who use that one can tell you whether that applies to them as well?

    Repossession is only going to be a concern if you're not keeping up payments though. If you do nothing in January, you'd just end up on your lender's SVR instead (usually a fair bit higher than your fixed rate).
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £131,000 (-£1,373 overpayment savings pot)
  • julicornjulicorn Forumite
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    Missed your last paragraph. Maybe post a statement of affairs, so that people can help you with how to optimise your spending?
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £131,000 (-£1,373 overpayment savings pot)
  • getmore4lessgetmore4less Forumite
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    retention deal most likely your best option.

    which lender, what's your current mortgage, full amount, rate, term payment.

    your real problem is you are spending too much.
    SOA
    http://www.stoozing.com/calculator/soa.php
    and Debt-Free wanabee
    https://forums.moneysavingexpert.com/forumdisplay.php?f=76

    With around £2kper month coming in you need to work on where it is going.
  • Hi,

    I will write a more detailed response shortly but just wanted to say Thankyou for your replies. Good to hear a retention deal may be possible. We’re with Nationwide. Re where the money is going, £600 a month is on debt repayments. Most are in 0 %. We’ve cut everything else back to the bone and cancelled any unnecessary spending..eg TV subscriptions.
    Not sure what a statement of affairs is! I’ll google :).

    Best wishes

    Ginger
  • julicornjulicorn Forumite
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    getmore4less posted a statement of affairs/ SOA link above, that saves you the search :)
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £131,000 (-£1,373 overpayment savings pot)
  • ACGACG Forumite
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    Providing you make your payments you will not be repossessed.

    You may struggle to get a mortgage elsewhere so will be stuck with your current lender but there is no harm in looking elsewhere first.
    I am a Mortgage Adviser
    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.
  • getmore4lessgetmore4less Forumite
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    Nationwide are OK for retention deals might not be the best around at the time but won't be far off.
  • Thanks again. And for posting link to SOA.

    Ideally I’d like to extend our term so that we can lower the monthly payments for a few years while we tackle the debt. Husband wants us to borrow more to consolidate debt but I don’t think there is much chance of that! And Id like to avoid having extra debt secured against home.

    I will post SOA once my daughter is asleep!

    Thanks again.
  • getmore4lessgetmore4less Forumite
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    Best to move to the Debt board for the SOA.
  • ThrugelmirThrugelmir Forumite
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    Ideally I’d like to extend our term so that we can lower the monthly payments for a few years while we tackle the debt. Husband wants us to borrow more to consolidate debt but I don’t think there is much chance of that! And Id like to avoid having extra debt secured against home.

    As difficult and challenging as the current situation is. Kicking the can down the road doesn't solve the issue. Merely defers it. Face everything head on. I recall the days when money was tight and walked around Sainsburys with a calculator in my hand. Had a budget and stuck to it. Amazing what can be achieved when one puts ones mind to it. Teaches oneself lessons that you'll never wish to repeat. Remember put the mortgage before unsecured debts.

    Plenty of free advice and support at

    https://www.nationaldebtline.org/

    Which is a Government funded charity.
    “Markets have been so good for so long, that many investors are trivialising the advanatages of actively managing portfolio risk" - Gervais Williams
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