Can anyone help us? We are struggling to remortage

lemoncheesecake

Hi,

My husband and I have been trying to re-mortgage but have been unable to so far and we have been turned down on affordability. Does anyone know who might lend us more. Any help appreciated as we are stuck on the SVR with northern rock.

TheGreatBear

Hi there, if we are to help we will need a bit more information.

Value of property?
Loan size?
Income?
Credit commitments?
Any missed payments?

Forward this on and we may be able to point you in the right direction

Regards

lemoncheesecake

thankyou

value - 185,000
loan - 158,500
Income - 37k
credit commitments - 10k
no missed payments but we have a default from over 2 years ago for £250 that has been satisfied.

dunstonh

Yes, you certainly are pushing the income multiples. The cost of credit commitments comes off the income so your income is really 27k. What you are asking for is a 5.85 income multiple and that will be hard work in the current environment. The mortgage advisers will confirm if it is a no-no or there is a lender that will accept it on better terms than NR.

Geoff13_2

Do you mean £10k outstanding, or £10k per annum payments on your credit?

lemoncheesecake

I mean 10k outstanding on credit - we pay out about 4.6K a year on that outstanding credit which consists of a loan each and credit card each. Both the loans have 12mths to run on them.

TheGreatBear

Presuming that the 10k is total debt and not yearly payments then there should be a couple of lenders who would be interested.

Abbey would probably be the best bet but it would be worth talking to your advisor as we only have limited information.

Good luck :rotfl:

beecher

When you say 'does anyone know who might lend us more' do you mean that you want to increase your mortgage?

_Andy_

Based on what you're actually paying (£4600/12 = £383) it would fail Abbey's affordability. First National might be worth a punt.

lemoncheesecake

sorry, no, I don't want to increase the mortgage! I meant we are falling short on the affordability ratios. We were thinking of consolidating the outstanding credit onto one loan to reduce payments - would this be a bad idea? I'm only working p/t because we have children so am trying to find something to supplement our income in the extra hours.

The SVR at Northern Rock is too much for us to sustain for much longer if we can't fix in to another deal. Getting a bit desperate really :-(

lemoncheesecake

thanks will look at both first national and abbey