Moan about mortgage company - and what else can I do?

papermoney

So the situation is we need to move house. I wanted to port my mortgage over to a new property. At the moment I have a 100% mortgage. If we moved the mortgage to the new property that would go down to 70% mortgage as we will have the cash from another house sale to make the shortfall up (house we will buy is more expensive) so at least there would be equity in the house. I know there is a credit crunch at the moment but the mortgage company have refused to do this and say that I won't be able to afford the mortgage.

I don't understand we have over 50k cash to put down and the mortgage is already up and running in my name only whereas if we ported it over it would also be in my partners name so they have taken into account his salary too.

I know things are bad at the moment but like the bloke said to me on the phone if we couldn't pay the mortgage at least there was some equity ion the house whereas if anything goes wrong now it's on 100%


So the option is to pay the mortgage off and pay the £6k remeption fees (something we were hoping to avoid) and find a mortgage elsewhere - which in the current market is not good.

My head is fuzzy - am I missing any options?

minimike2

Need some more info here.

What are your incomes, the purchase price, and mortgage required. Also whats the current mortgage outstanding?

rdsmortgageman

papermoney wrote: »

So the situation is we need to move house. I wanted to port my mortgage over to a new property. At the moment I have a 100% mortgage. If we moved the mortgage to the new property that would go down to 70% mortgage as we will have the cash from another house sale to make the shortfall up (house we will buy is more expensive) so at least there would be equity in the house. I know there is a credit crunch at the moment but the mortgage company have refused to do this and say that I won't be able to afford the mortgage.

I don't understand we have over 50k cash to put down and the mortgage is already up and running in my name only whereas if we ported it over it would also be in my partners name so they have taken into account his salary too.

I know things are bad at the moment but like the bloke said to me on the phone if we couldn't pay the mortgage at least there was some equity ion the house whereas if anything goes wrong now it's on 100%


So the option is to pay the mortgage off and pay the £6k remeption fees (something we were hoping to avoid) and find a mortgage elsewhere - which in the current market is not good.

My head is fuzzy - am I missing any options?

Who is the lender?

What is the loan amount?

beecher

When does the existing mortgage deal run out? Is there any way you could sell the other house, bank the money and wait til your deal runs out before buying another house? If they aren't allowing you to port, then I think you either do that or pay the £6k.

I think it is the affordablility factor that is more of an issue than the LTV - what salary multiple are you looking at?

papermoney

Thanks for the reply.

At the moment the current house is worth 140k and has a mortgage of 134k on it then 6k remdeption on top so 141k needs to be paid back.

We want to buy a house worth 170k we have between 40-50k cash (from another house sale)

I earn just under 34k a year and OH (self employed) earns 5k (im wondering if self certification is the way to go)

We need to sell this house because I am pregnant and there just isn't enough room for us all and it is also the house I lived in with my ex husband.

The mortgage deal doesn't run out on this house until 2012 - so it's ages away yet.

Im currently with NR.

Not sure if i've answered everything. I hope that's the infor needed.

rdsmortgageman

You either have a low credit score, or Northern Rock want rid of you (as they do with all mortgages).

Here are the multiples:

Income Multiples Matrix

Income Multiples for Residential Products

Gross Basic

Income BandHigh Credit ScoreMedium Credit ScoreLow Credit ScoreSingle IncomeJoint IncomeSingle IncomeJoint IncomeSingle IncomeJoint IncomeOver £100,0004.94.94.64.14.03.0£32,501 - £100,0004.64.64.33.83.82.9£25,001 - £32,5004.34.34.03.53.72.8£17,501 - £25,0004.04.03.83.33.62.8£10,000 - £17,5003.83.83.63.13.52.8£0 - £10,0003.53.53.53.03.52.8


The table above sets out the income multiples that will apply, subject to credit score, for all residential products.

This was taken from their website.

So @ £34,500 (assuming no other outgoings) you would be able to borrow the correct amount at both high and medium scores. If a low score, you should be able to borrow £131,000 which would mean you only have to top up with another £5k (better than paying as a redemption!)

Speak to a local broker and ask them to do a DIP on portabillity to see what comes back.

papermoney

My partner uses a local broker (he had to remortgage the other property last year) so will get hom to talk about doing a DIP. He is under the impression that it wil be better just to do a self cert mortgage (the last 2 mortgages he has had have been done this way).

I guess we could thinking about porting the mortgage on the other property over instead.

It just makes my head hurt lol

Thanks for your reply.

rdsmortgageman

Why pay Northern Rock £6,000 more than you need to. Self cert can be dangerous. The only reason you would use it is if NR wouldn't take any of his £5k into account i.e. if he hadn't been in business for long enough etc.

If you mean going self cert and stating an incorrect income, that is very dodgy.

Be very wary about opting for this.

papermoney

No we will use correct figures for self cert. I wouldn't do it any orther way.
I have just spoken to NR who say that I now have to wait 6 months again before they will reconsider their decision on the matter.

He has been in business 5 years now. I'm not sure how long is long enough. His mortgage advisor apparently recommended this (self cert as they don't look at books). This was before we got together so just looking at options now available to us.

The way it is looking i'm going to have to pay NR.

I just can't get over the fact they are saying we will not afford the mortgage yet it is exactly what i'm paying now and that was going on just my salary.

I guess it's to do with the rise of bills etc.

rdsmortgageman

They want rid of you. As they do every other customer. Want money back in to make balance sheet look good.

papermoney

Thanks - it does seem that that is the case. Even the lady on the phone said it doesn't make sense but maybe they have a hiden agenda. I'm reading between the lines that she means they want the money back. So if we want to move (which we really do need to) i'm just going to have to pay it. It may work in the long run as the interest was fairly high nearly 6.9% so i'm sure we'd get something lower. Or at least I hope so lol

Thanks again.