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  • FIRST POST
    • mandi80
    • By mandi80 8th Nov 18, 8:04 PM
    • 19Posts
    • 5Thanks
    mandi80
    mortgage switch
    • #1
    • 8th Nov 18, 8:04 PM
    mortgage switch 8th Nov 18 at 8:04 PM
    A couple of months ago we were thinking of moving. This is no longer happening so we have decided to stay put!

    My current fixed rate ends in January so I want to be proactive in securing the best possible rate for our new product.

    We have 50K ish of unsecured debt. I have a thread for this on the DFW boards and am doing everything I can do reduce this as quickly as possible. There is nothing else I can do at the moment,

    Will there be high street options for us?

    Joint income gross - 75K
    Equity in current home - 130K
    House value - 210 K- we think

    So we need a mortgage of 80K, or thereabouts.

    Would our level of debt automatically prevent this.

    I thought that we had no late payments, however I have discovered a few late payment marker, with the most recent one being 18 months ago. Nothing since then.

    I have used the bank affordability calculators and it appears that we are eligible, however I know that this is just a guide.

    I know that different lenders use different criteria, but apparently most banks look at debt to income ratio. Is this calculated by comparing total debt to income, or is it based on monthly income and monthly debt payments?

    Sorry to ramble!

    Any advice welcomed
Page 1
    • Nebulous2
    • By Nebulous2 8th Nov 18, 8:42 PM
    • 2,093 Posts
    • 1,286 Thanks
    Nebulous2
    • #2
    • 8th Nov 18, 8:42 PM
    • #2
    • 8th Nov 18, 8:42 PM
    Are you with a high street lender? If you are looking to maintain your current mortgage level and expiry they are likely to offer a new deal without checking affordability.
    • Thrugelmir
    • By Thrugelmir 8th Nov 18, 11:19 PM
    • 60,967 Posts
    • 54,170 Thanks
    Thrugelmir
    • #3
    • 8th Nov 18, 11:19 PM
    • #3
    • 8th Nov 18, 11:19 PM
    Your existing lender is the place to start. Apply online and then this avoids any affordability checks etc. Then you can ascertain what retention offers are available to you.

    With your level of debts. Better to direct any spare cash at the high interest rate debts that you have. Than potentially waste it on remortgaging to another lender and incurring costs.

    While you may justify to yourselves that the debt is manageable etc. From the outside looking in there would be questions as to whether this could happen again in the future. Continuing on your current path. Will be the way to convince lenders in the future that you've learnt your lesson and taken on board the experience. With your incomes should be possible to quickly knock a hole in the debt pile if you are totally committed.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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