Remortgaging furlough

cjmc24

Hi everyone, (sorry for the long winded post!) were due to come to the end of our 2 year fixed term of our mortgage early next year so need to obviously sort remortgaging at some point.
We are with Santander at the moment; we didn't have a lot of option at the time as my partner is self employed, and at the time only had 2 years worth of accounts, we do have a good rate with them at the moment so more than happy to stay with them.
We've also done a lot of work to the house over the past few years, so now will have a 48% loan to value.
My question is, I am currently on furlough, and I cant see it ending any time soon. Annoyingly, I expect I will be going back to work the same time as we are due to remortgage or a month before.
My question is will my furlough salary be taken in to account when we do remortgage? My partner technically earns enough now to cover the mortgage through his salary alone. Is that also a possibility - although I would obviously still want to have my name on the mortgage to?
Adding another complication to it - when we did our recent extension I took out a 0% credit card to pay for our kitchen, which I was hoping to pay back by now. But because of furlough, it wont be wiped by the time we remortgage. Hoping we can take equity out of the house when we do remortgage! Will the CC be an issue for this situation?
Basically COVID has put a bit of a spanner in our original plans!

dimbo61

Being on furlough and having credit card debt will indeed be an issue when applying to a new lender.
You do have the option of sticking with Santander and taking a new deal online.
You won't be able to borrow more or change the term but it does give you breathing space 

Thrugelmir

Firstly see what your existing lender is offering you by checking online. This is not a remortgage simply a product switch. Requires no underwriting. 

MWT

Thrugelmir said:

Firstly see what your existing lender is offering you by checking online. This is not a remortgage simply a product switch. Requires no underwriting. 

Looks like they want to increase the mortgage amount to take some of the equity out of the house so the retention products are not what they need unfortunately...

cjmc24

Sorry to ask a silly question, but what does no underwriting mean? We don’t NEED to take equity out, we have made about £300k on the house and only looking to take £10k but we could pay it off before if needs be. I’m just wondering if it will have an adverse effect on the remortgage more than anything.

cjmc24

We don’t need to increase the mortgage amount it just needs to stay the same

MWT

Then you should find that your current lender will offer you options to re-fix the mortgage again without any questions asked, just hit the button online and you are done.

Thrugelmir

cjmc24 said:

Sorry to ask a silly question, but what does no underwriting mean? We don’t NEED to take equity out, we have made about £300k on the house and only looking to take £10k but we could pay it off before if needs be. I’m just wondering if it will have an adverse effect on the remortgage more than anything.

If you wish to increase the amount of the mortgage, i.e. borrow an additional £10k.  Then you will go through the entire affordability process based on your circumstances at the time of application. This from the lenders perspective is underwriting.