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    • TestingCold
    • By TestingCold 10th Apr 18, 2:58 PM
    • 2Posts
    • 0Thanks
    Advice on Remortgaging With a Lower Income
    • #1
    • 10th Apr 18, 2:58 PM
    Advice on Remortgaging With a Lower Income 10th Apr 18 at 2:58 PM
    Hi all, newbie here

    I am looking for advice on our situation which is this:
    • Bought a house with 51k help to buy and 176,500 mortgage in 2016 on 5 year fix.
    • Currently overpaying by 220 per month with current overpayment sat at around 4,500.
    • We had our first child in 2017 and planning on another in 2019.
    • Partner has decided to drop from full time to part time work in order to bring up the children herself in the early years.
    • This means our income has dropped by roughly 18k/year.
    • When we come to remortgage we need to borrow roughly 180k to incorporate the help 2 buy (taking into consideration current overpayments for the rest of the term).
    • If the lenders will only lend 4x salary when we come to remortgage and I haven't had a promotion/pay rise, we are looking at a figure of 150,000 max.

    So my question is, if this is the case when we come to remortgage will we have trouble incorporating the help 2 buy portion of the borrowing into the new mortgage? Even if we have demonstrated we can afford to overpay every month on our current mortgage, and we have never missed a payment?

    Of course I can only theorise on future circumstances. If you need any more info just ask.

    Thanks for any help/advice.
Page 1
    • astal
    • By astal 10th Apr 18, 3:32 PM
    • 11 Posts
    • 2 Thanks
    • #2
    • 10th Apr 18, 3:32 PM
    • #2
    • 10th Apr 18, 3:32 PM
    Not expert and not had any experience with help to buy, but my view is that if you don't change mortgage provider, you don't need to re-apply, hence to resubmit income details. The current lender would be happy that you won't have missed any payments at the time (and credit score fine), and will accept re-mortgage.
    • TestingCold
    • By TestingCold 11th Apr 18, 9:36 AM
    • 2 Posts
    • 0 Thanks
    • #3
    • 11th Apr 18, 9:36 AM
    • #3
    • 11th Apr 18, 9:36 AM
    Thanks for your reply. I thought that because we would need to increase the borrowing it would need to be a remortgage and not just a rate switch.

    Does anyone know more?
    • getmore4less
    • By getmore4less 11th Apr 18, 10:07 AM
    • 33,066 Posts
    • 19,936 Thanks
    • #4
    • 11th Apr 18, 10:07 AM
    • #4
    • 11th Apr 18, 10:07 AM
    51k HTB means in 5 years you need to be at 129k to remortgage back up to 180k

    To get your mortgage down to that your mortgage payment will be in the range
    @ 1.0% 920
    @ 2.5% 1110

    With overpayment of 220 that suggest a term of around 22-24 years when you took it out.

    Depending on any HPI your LTV may go up as well which means higher rates.

    You may need to extend the term to make the new borrowings affordable.
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