Failed affordability - do we have any other options or are we now mortgage prisoners??

InAPickle76

Hi,

So the mortgage broker got back to us late this afternoon. Unfortunately they cannot secure any fixed rate deals for us as we are failing on affordability. Is this the end of the line for us or is there any other option for us?? I am feeling that we will now be in the 'mortgage prisoners' category as we are seemingly unable to move from our current mortgage lender

simon_or

That's unfortunate. Which bank are you with? If it's a high street one then they should have reasonable rates for switch options that you can get irrespective of affordability.

If you're with an adverse bank then you may still have switch options.

If you're with one of those banks that doesn't offer new mortgages anymore then it's a much tougher situation.

What is the broker recommending?

ACG

Presumably your broker has looked at options like 5 year fixes or extending the term? 
Failing those options, as Simon says it would just be seeing what your current lender can offer you. 

This is the position I am in, I bought my house but then we had a kid and my Mrs went part time. 

InAPickle76

simon_or said:

That's unfortunate. Which bank are you with? If it's a high street one then they should have reasonable rates for switch options that you can get irrespective of affordability.

If you're with an adverse bank then you may still have switch options.

If you're with one of those banks that doesn't offer new mortgages anymore then it's a much tougher situation.

What is the broker recommending?

ACG said:

Presumably your broker has looked at options like 5 year fixes or extending the term? 
Failing those options, as Simon says it would just be seeing what your current lender can offer you. 

This is the position I am in, I bought my house but then we had a kid and my Mrs went part time. 

Thanks both - we are with The One Account so an offset mortgage. It comes under The Royal Bank of Scotland. They have said that we would have to go through full affordability checks with income and expenditure review etc as we would be switching to RBOS/Natwest. The broker has tried Natwest but is coming up at approx £10,000 short on affordability. She said to go back to the lender but we have already tried and we definitely fail on affordability if we have already done so via the broker's searches

InAPickle76

Just wondering if it is worth approaching any of the sub prime lenders? Or would their affordability checks be the same as the main lenders? 

MFWannabe

Are you using a good broker that deals with non straight forward/ adverse cases? 

InAPickle76

MFWannabe said:

Are you using a good broker that deals with non straight forward/ adverse cases? 

We used Your Mortgage People who were pretty helpful but not sure how much they deal with the more complex cases. Would we be best to try a different broker?

MFWannabe

I would suggest using a good broker who deals with adverse credit, they will know who to approach and who not to go to 

InAPickle76

MFWannabe said:

I would suggest using a good broker who deals with adverse credit, they will know who to approach and who not to go to 

Sorry to be really daft but how would I go about finding broker that deals with adverse credit - do I just search via the internet? People have advised to use a local broker too rather than a national one - is this the best route?

ACG

Do you have bad credit? 
I cant see that on your post, but maybe I missed it. 

Adverse lenders are starting at around 6.5% and go up from there. It might not be much cheaper than your offset. 

InAPickle76

ACG said:

Do you have bad credit? 
I cant see that on your post, but maybe I missed it. 

Adverse lenders are starting at around 6.5% and go up from there. It might not be much cheaper than your offset. 

We had defaults in the past but all dropped off credit files now. We have 2 loan at the mo which I know are the issue when it comes to affordability. L&C actually got back to me yesterday to say that there is a possibility that there are a few lenders that may be able to help us - have sent over all bank statement, payslips, proof of PIP/CA for my son/husband so will keep my fingers crossed for any news next week.

If no luck, I will search for an adverse lender broker - anyone have any recommendations for where to start with this option?

Thanks again for all your help and support so far