Mortgage affordability

Intel1982

Hi there,

We are looking to upsize our house as our circumstances have changed, we have two disabled children who can't attend school so now home educated and we need more space!

We are currently in a 2 year fix at 4.99% with our local credit union, we owe £76k on our mortgage but would like to borrow an extra £150k. 

Our credit union are very strict with applications and are no longer accepting mortgage customers but said they would lend us an extra £64,000 but this isn't enough for what we want.

My question is whether it would be worth applying to a mainstream bank and being allowed to borrow more and take the hit with paying the early repayment charge with the credit union. Our income is around 5.5k per month, this is a mixture of salary and benefits. We have no debt, no child care, no car leases etc.

Thanks. 

Brie

It does seem to be the only option unless you can convince the credit union that you have unique circumstances.  

We have no debt

No credit cards and no overdraft?  No phone contracts or car insurance paid monthly??  Just checking.

Intel1982

Thanks for replying. Yes we have a credit card and an overdraft but don't use them. SIM only contracts and we pay all our insurance annually, I own my car outright (nothing fancy 🤣)

ACG

You may be able to get more, but it comes down to the details. 
What benefits, how old are the kids, are the benefits such as ESA/PIP guaranteed or reviewed etc etc - im not looking for answers to those questions but a lender/broker will be. 

MWT

As ACG suggests, you will need a good broker to help you navigate to the right lender for your mixture of benefits and situation.

Otherwise, it does seem like the only option if your current lender cannot help.

Intel1982

Thanks! Just feels frustrating knowing we can afford higher repayments but not being allowed to get the mortgage we need.

ACG

You do not really hear of credit unions lending on mortgages, I thought that was only really in NI. 

To be fair though, your not alone. Unless your situation is relatively straight forward, a large percentage of the population have to look beyond the highstreet. Ironically you are probably the opposite and might find you do better on the high street.