Re-mortgage advice
Discussion
...exactly!
The affordability calculations are tight however the mortgage is over 30 years. £1500 per month isn't an issue. I have had no issues with paying my mortgage over the past 4 years. I also expect my salary to go up another £10-15k over the next 2-3 years.
I have also a bit of cash saved up which I could use to do the extension however I am reluctant to use it.
The affordability calculations are tight however the mortgage is over 30 years. £1500 per month isn't an issue. I have had no issues with paying my mortgage over the past 4 years. I also expect my salary to go up another £10-15k over the next 2-3 years.
I have also a bit of cash saved up which I could use to do the extension however I am reluctant to use it.
I'm in a similar situation (income/family/mortage age) to you and remortgaging at the moment. I think you'll struggle to find lenders who'll give you more than 4x your salary now, thus you may find yourself stuck with your current lender.
Hopefully Sarnie or another broker can help you find something better.
Hopefully Sarnie or another broker can help you find something better.
Lostprophet said:
Hi Folks,
I wonder if I could seek some advice.
It’s been 4 years since we mortgaged our first family home. I am in the process of planning our re-mortgage. We currently have £355k mortgage on our property. The property is valued at £750k. I would like to borrow £45k which will take the mortgage to £400k. The money is to go into an extension which will add value to the property and increase the value to maybe £780-800k.
My base salary is £75k plus bonus, my other income totals to £5.8k per year which is made up of net rental income and a private client. This is traceable on my bank statement. My wife was employed when we applied for our first mortgage, i.e her and my salary combined gave us our first mortgage borrowing limit. She has started her own business at the end of last year. Currently she is banking £1k per month.
I was wondering if I could/should borrow 5 times my income, as in employed salary plus the other £6k (is that allowable by the way of calculating income) or do I need involve my wife's income in the mortgage which will be hard to verify apart from bank statements.
Thank you for your assistance.
How often is your bonus paid?I wonder if I could seek some advice.
It’s been 4 years since we mortgaged our first family home. I am in the process of planning our re-mortgage. We currently have £355k mortgage on our property. The property is valued at £750k. I would like to borrow £45k which will take the mortgage to £400k. The money is to go into an extension which will add value to the property and increase the value to maybe £780-800k.
My base salary is £75k plus bonus, my other income totals to £5.8k per year which is made up of net rental income and a private client. This is traceable on my bank statement. My wife was employed when we applied for our first mortgage, i.e her and my salary combined gave us our first mortgage borrowing limit. She has started her own business at the end of last year. Currently she is banking £1k per month.
I was wondering if I could/should borrow 5 times my income, as in employed salary plus the other £6k (is that allowable by the way of calculating income) or do I need involve my wife's income in the mortgage which will be hard to verify apart from bank statements.
Thank you for your assistance.
Edited by Lostprophet on Monday 30th January 11:32
If annually, how much has it been for the last two years?
You can't use rental income as your income unless it was from a property without a mortgage. You won't be able to use your "private Client" income unless you have two years of HMRC submissions to evidence this income.
Your Wife's income cannot be used in anyway until she has completed at least one full financial year, even then, most lenders will still want two years figures.
That's handy information. It's quite strict by the looks of it and rightly so I think!
My last employer paid 25% and 30%. I am with a new employer now so it might also be hard to track.
I guess if they can do 5 times my salary I can get some cash out. I will remortgage the other property for the balance I guess.
I appreciate your guidance. I will have to rethink the extension funding!
My last employer paid 25% and 30%. I am with a new employer now so it might also be hard to track.
I guess if they can do 5 times my salary I can get some cash out. I will remortgage the other property for the balance I guess.
I appreciate your guidance. I will have to rethink the extension funding!
Lostprophet said:
I am with a new employer now
Ah.You can't lend against unearned bonus income I'm afraid..................it's also worth noting that the 5x income is a GROSS lending figure, so there will be deductions to the lending amount if you have dependents (some will class your wife as dependent if you have no usuable income for her) and any credit commitments you may have including but not limited to also, childcare costs, student loan deductions and pension deductions etc etc....
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