Nationwide remortgage, renovating and becoming self employed

Sansa

The 2 year fix rate with Nationwide is coming to an end in the beginning of next year. We are going through full house reno and hoping to increase value. The only problem is the change in circumstances as my husband became self employed. Is making more money but I know may be hard to remortgage. I am back to work after we had our child but is part time so I don't earn enough to relay on my income. So I am naturally worried. Can we continue with Nationwide? Can we increase value in this situation?

kingstreet

You may get a better loan to value and hence a better rate, but you will not be able to borrow more.

You are looking at your existing lender's customer retention products you are not remortgaging. That is a new mortgage with a new lender to repay the existing mortgage.

Sansa

Thanks. We don't want to borrow more just to increase the price of the property and go for less years. Ready to put 4-5k towards the deposit as well.
Price of the property when bough - 170k
Current price 180k not taking in account the work done.
Hoping for a minimum of 220k to 240k revaluation but not sure if you go trough income checks if revaluation with the same bank.
In the end of the current deal the outstanding mortgage amount will be 135k

kingstreet

If you attempt to reduce the term formally, you will invoke the advice procedure and income and status checks will be required.

Leave the term alone and overpay up to the level you would have needed to pay each month over the shorter-term and you will achieve the same result.

sal_III

Unless you build an extension there is no way in hell your property value will jump from 180k to 220-240k

You seem to talk only about increasing the value, rather than improving your life by way of renovation. What is the driver behind this?

Renovations rarely increase the value of the property by more than the cost of the renovation if that, unless it was in a very poor state to begin with, which doesn't look to be the case since you lived there for years.

Gotkeys

[/QUOTE] We've just renewed our mortgage with nationwide. Due to a change in income we had to stay with them as I didn't want any affordability or status checks. We had 23 years remaining but they let me reduce the remaining term to 20 years without any further checks.

Gotkeys

We've just renewed our mortgage with nationwide. Due to a change in income we had to stay with them as I didn't want any affordability or status checks. We had 23 years remaining but they let me reduce the remaining term to 20 years without any further checks.

kingstreet

Gotkeys wrote: »

We've just renewed our mortgage with nationwide. Due to a change in income we had to stay with them as I didn't want any affordability or status checks. We had 23 years remaining but they let me reduce the remaining term to 20 years without any further checks.

Interesting. Anything which would affect affordability should trigger a review.