Help: Worried if we will be able to re-mortgage

ShazzaUk

We currently have an interest only mortgage for £152,192.00 with Northern Rock on a 4.49% interest rate. We completed this mortgage on 6th Sept 2006 and the early repayment charge end date is 1st July 2008.

We have two endowments running for £30k and 16k, when our earnings are better i will switch to interest and repayment.

Our earnings are low at the moment as i am only working part-time while my children are young. I should hopefully be returning to full time work early next year.
Our combined earnings are about 23k. When we took out the above mortgage our financial adviser fudged figures and we went self-cert to get the mortgage we needed.

With all the changes in the mortgages now i am worried that we won't get a mortgage offer on our current earnings. We have never missed any payments and have always had good credit history.

Any advice would be appreciated as i can't stop worrying at the moment. Also when should we start applying for our new mortgage.

Regards
Shazza

MortgageMamma

Hi Shazza

I'm not going to get on the moral highground and start ranting about inflating income and how its illegal and can land YOU and your mortgage adviser a prison sentence. I think that one sentence I have typed gives you a clear enough picture why you SHOULD NOT go that route again.

Lets see if we can do this legitimately for you.

How much working familys/child tax credit do you get?
How much child benefit do you get?
Do you have any other income?

MM

ShazzaUk

Blimey that is scary hope i don't get in to trouble now, i was so naive at the time. The financial adviser no longer works in this field, i wonder why!!!

We get £42/month tax credits, £120.80/month child benefit. No other income
Usual household bills, owe £1200 credit card.

We want to go with interest only again for 2 years with a view of switching to repayment after that period.

Could you advise what the deal would be roughly now on our current earnings and also on a combined income of 35k if i went back to work sooner.

Thanks

MortgageMamma

It could be done, but I am seriously concerned about your affordability

Can you tell me what your combined earnings are after tax and national insurance? how many kids do you have?

patchwork_cat

Have another look at your earnings and tax credit as they don't tally up. For the tax credit you are on you need to be earning about 4 to 5k more than 23k, it adds up either tax credit is incorrect or wages are more like 27K

ShazzaUk

Hubby comes out with between £330 and £350/week and i come out with £380-400/month.

We have two children. After all our outgoings we have £70/wk to ourselves for any neccessities or entertainment. This suits us and we manage quite well.

I think in reality i need to go back to work sooner and get back onto a full time wage but really wanted to wait until youngest starts school end of the year.

chappers

MortgageMamma wrote: »

I'm not going to get on the moral highground and start ranting about inflating income and how its illegal and can land YOU and your mortgage adviser a prison sentence. I think that one sentence I have typed gives you a clear enough picture why you SHOULD NOT go that route again.

Not to mention the situation you might now find yourselves in, stuck on NR SVR at wait for it 7.59%. I hope you can do something about remortgaging as other wise you mortgage payments are going to rise by about £400 per month

jedimonkey

hi shazza. Your total mortgage is approx £400 of a difference from mine... my NR rate was 4.45%. I also had interest only but overpaid to more than the full amount.

Im in the middle of a remortgage at the moment but it has taken longer than i thought..... my NR SVR has kicked in for this months payments, and I would warn you that they went up from £630ish to £1097ish this month. So get your remortgage sorted quickly.

Your affordability worries me - our joint income is £53k - i really dont know how you cope on 23k.... good luck getting stuff sorted.

ShazzaUk

patchwork_cat wrote: »

Have another look at your earnings and tax credit as they don't tally up. For the tax credit you are on you need to be earning about 4 to 5k more than 23k, it adds up either tax credit is incorrect or wages are more like 27K[/quo

Our combined earnings last year were £26451.00, to date this year going from figures on our payslips we have earnt a combined total of £24647.00
I guess between now and 1st April we will earn another £1300 combined meaning a yearly total April to April of £25947.00.

ShazzaUk

jedimonkey wrote: »

hi shazza. Your total mortgage is approx £400 of a difference from mine... my NR rate was 4.45%. I also had interest only but overpaid to more than the full amount.

Im in the middle of a remortgage at the moment but it has taken longer than i thought..... my NR SVR has kicked in for this months payments, and I would warn you that they went up from £630ish to £1097ish this month. So get your remortgage sorted quickly.

Your affordability worries me - our joint income is £53k - i really dont know how you cope on 23k.... good luck getting stuff sorted.

We cope on a tight budget because we have to but we know that it is only short term while the kids are young.