Remortgaging from fixed rate with adverse lender with less income and more dependants!

Geob

Hi,

Our fixed rate with Aldermore (4.08%) ends in NOV and the plan has always been to remortgage with a different lender. Im concerned this won't be possible due to our cuurrent situation and I'm wondering if anyone can help shed some light on if they think remortgaging would be an option. Here is our info-

-We are now a one income family bringing home around £2070pm.
-We will have a 2 year old and a baby due in August
-We have around £175k left to pay of the mortgage
-Bought our house for £205k but current rough estimate value is £322k which gives us a much better LTV (not sure how important that is)
-No childcare costs as I am a stay at home mum at the moment.
-No other loans other than the mortgage
-Both have OK-Good credit scores - no missed payments
-No current loans other than mortgage

Are we doomed now our income has nearly halved and we have 2 kids?

MWT

So is that net £2070, a salary of around £30k gross, or is it made of of other amounts like over-time bonuses etc.?

Geob

@MWT  it’s around £2070 min monthly take home after tax/pension etc. Salary of £34k then there are bonuses along the way but that’s the basic monthly pay.

MWT

Time for you to talk to a broker then as it is going to come down to the details as you are clearly pushing it more than a bit to get a £175k mortgage on £34k salary, especially with the increase in dependants.

Hopefully the reasons for using an adverse lender last time have all vanished now?

Geob

@MWT yeah, I had a poor credit score which was the only reason we had to use the adverse lender, but my score is much better now... we just have less income and kids! Does the LTV count for much or will it likely come down to affordability checks? 

MWT

Geob said:

@MWT yeah, I had a poor credit score which was the only reason we had to use the adverse lender, but my score is much better now...

It will not have been your credit score that was the problem, but the events on your credit history, so I would suggest you review your credit file and see what is still on there as the synthetic score you see is not what the lenders are interested in...

Use a service like 'checkmyfile' which looks across multiple agencies.

ACG

I cant see you having any other lenders available to you personally. 

I dont think the numbers stack up with one child.

Sistergold

So there are are 3 dependents, you, child and one more on the way on £34k income? Might be easier to switch product with current lender and then when children are older maybe think of going back to work for the sake of remortgaging? For now it’s seems very tight on the income but who knows maybe mortgage broker will say otherwise. For me I wouldn’t bother lending is quite strict to say the least. £34k x 4 = £136k and £34k x 5 = £170k and you need £175k

Snookie12cat

You might must get it at 5x salary if you have bonuses but with 3 dependants it's highly unlikely tbh.
Might be worth staying where you are and then paying more off the house so you can remortgage elsewhere in the future
.

Geob

Thanks for all your advice everyone, it’s frustrating because we save and have no money trouble but I understand that’s not the way things work when it comes to mortgages! @MWT yes, sorry, that is what i meant, my credit file still
showed missed payments and old debt which has now been cleared and no longer shows. 

Thrugelmir

Use some of your savings to accelerate paying down the mortgage. Not a solution but at least gets you on the right long term road.