Northern Rock 125% HELP PLEASE!

DRS1ONE

maninthestreet wrote: »

You've already posted about this once under your other userid, NorthernRockerRemortgager.

Well spotted. I thought I was intruding on a different thread

DRS1ONE

Conrad wrote: »

Its impossible to say whether another lender will allow you a 95% remortgage, its going to be largely dependant upon affordability assesments made by machines.

I am new to this and obviously missed the classes on financial management.

It surprises me though how nobody knows if a lender will lend based on basic financial information. How do these machines do the sums?
If I only require a mortgage of 115,000 and the property is valued at 130,000.
Income is 47,000
Unsecured loans 30,000 (not required on the Mortgage).

Is this not easy to calculate given previous experience??

Thanks for the advice it is very useful. I am learning lots!

DRS1ONE

maninthestreet wrote: »

You've already posted about this once under your other userid, NorthernRockerRemortgager.

NorthernRockerRemortgager is not me!

Leon_W

"Is this not easy to calculate given previous experience??"



No it's not easy.

You have unsecured loans which are obviously costing you a certain amount per month. Let's say it is just the one loan @ £30k

If the loan was over 30 years and costing you £100pm then any lender will take that as a given outgoing and base any affordability calculation on the fact that you are committed to pay this.

If the same loan was structured over 2 years the outcome would be completely different. It would be costing you about £1500pm which would make your mortgage less affordable, if not impossible.

So the upshot is , is that it's not just what you owe but over what period you owe it and its monthly cost.

minimike2

Sarkin....they wouldnt even qualify for an IVA.

What a rediculous suggestion!

DRS1ONE

So are you saying I would have an increased chance in getting a mortgage if my unsecured debt was over a longer period thus outgoings per month being less?

Message to Leon W

Leon_W

Exactly. In the eyes of a lender you then have more disposable income and your mortgage is more affordable.

The problem is that by spreading it out over a longer period helps with the mortgage but it doesn't really help you. Basically you'd pay more interest.

The ideal situation would be to have a structured loan over however long but with the facility to overpay without penalty.

DRS1ONE

Thanks I shall do the sums.

I actually feel positive about getting this sorted.
Us newbie’s to the financial world really need to learn more and pay attention to the market. They should have included this topic at school!

Let my experience be a lesson to others.

Earn it before you spend it!

minimike2

DRS1ONE wrote: »

They should have included this topic at school!

Here here!

Bestthingsinlifearefree

Hi Drs1,

I would start a thread in the debt free forum. You have a good income but are heavily in debt which suggests you are living beyond your means.

I would draw up a statement of affairs and have a very serious review of your spending habits / financial position.

There is always a way forward but you and your partner need to be taking action to reduce your debt.

I wish you well.

Best,