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Outstanding Mortgage Balance After Selling - 25/06/2010

Q: We need to sell our home as my husband is unemployed an and I am unable to work, this would leave us with £20,000 mortgage. Will we need to reapply for a mortgage and would this be possible given our circumstances?

A: If you sell your home and still owe £20,000 you will be required to pay this back by the lender. You will not be able to take any new mortgage because a mortgage is secured on the property that you own. You will need to agree payment of this amount with the existing lender preferably before you agree to sell. If you would like to discuss your circumstances further please don’t hesitate to contact us on 0800 028 4040 where you will be able to speak to one of our independent advisors.

How can I check if I've been removed from my mortgage? - 01/06/2010

Q: How can I find out if my name was removed from a mortgage? My ex wife will not give me the mortgage details to check with the mortgage lender.

A: It may be possible to answer some security questions with the lender to find out if you are still on the mortgage or not. If you don’t know the name of the lender, you can also apply for a credit report from Experian or Equifax which will 1) Give you the name of the lender if you require it, and 2) Confirm if you are still on the mortgage or not. You could also check the records held by the land registry, as they may have the name of the lender on them.

In any case, you would have had to have signed some sort of document to be removed from the mortgage. If you have no knowledge of this then you will more than likely still be on the mortgage.

If you wish to discus anything in more detail, please call us on 0800 028 4040 and speak with one of our Independent Mortgage Adivsors, who will be more than happy to help.

How early can I look for new mortgage deal? - 17/05/2010

Q: I've got a fixed rate deal which runs out in May 2011 how soon can I start looking around for a new deal without paying any penalties

A: Around about 10 to 12 weeks before is ideal because most mortgage offers are usually valid for 90 days so your solicitor would be able to wait for your early redemption penalty to end before completing on your new mortgage. It would also be prudent to check whether there are any penalties to pay even if you do remortgage after May 2011.

Can I get any help with my mortgage? - 14/05/2010

Q: Hello, I am a separated mother of two, but still live with my husband in a 3 bed house with a £200,000 mortgage being paid between us. I work part time (20 hours a week) and he works full time. He is seeing someone else and I want to take over the mortgage but am not sure if I would be able to? I received benefits, e.g. tax credits and child benefit. Please could you advise? Would I get any more help with the mortgage?

A: The existing mortgage lender is unlikely to release the former husband from the mortgage arrangement unless you have sufficient income to cover the £200,000 lending. Speaking to the lender will confirm whether this is a possibility or not.

We presume that 'help with the mortgage' means state benefits. Currently (with the partner there) there would be no help available. There is a possibility of claiming housing benefit if the former partner is moving out, but this would need to be fully discussed with the benefits agency.

If you require any more information or would like to discuss anything with one of our friendly financial advisors, please contact us on 0800 028 4040.

Can New Mortgage Be Less With Same Lender? - 26/02/2010

Q: I'm going to pay off my mortgage, can I make a new mortgage for less with the same company at a different address can this be done? Also if I go to pay this off and don't have all of it can they put the balance in with the new mortgage for the other address?

A: This can be done but there are a few lightly conditions. You will need to be eligible for a mortgage with your lender this will require their approval for mortgage again. The new property will also have to be suitable as security for your new mortgage (some lender choose not to lend on certain types of property). If you currently have an early redemption penalty on your existing mortgage you will usually be required to pay a proportion of this penalty if you are reducing your borrowing.

As for the 2nd part of your question, in principal yes, but you should be aware that your new loan will have to fit your lenders requirements for 'loan to value'. In the current market some lender are lending a lesser percentage than they used to. So if the loan required to the overall value of the property increases (as a result of extra borrowing needed),your interest rate could be higher or in the worst case your existing lender may not be able to lend the required amount on your new property. They should be able to work out if this is possible before you apply in most cases. If you would prefer independent advice please feel free to contact one of our advisors who are all totally independent Mortgage Consultants.

Mortgage Difficulties on Previously Underpinned Property - 26/02/2010

Q: What additional difficulties might I face obtaining a mortgage on a previously underpinned property?

A: Most well known lenders will consider underpinned properties for a mortgage. However, this will usually be subject to the remarks made in the surveyors valuation. The surveyor may request some additional details about the work completed. You could also consider having your own independent valuation carried out before applying for your mortgage. Click Here for a top 5 list of things to consider when buying an underpinned property. If you are unsure please contact one of our independent Mortgage Consultants on 0800 028 4040 who would be happy to help.

Income wasn't checked when I took my mortgage - 19/01/2010

Q: My income was not checked when I took out my mortgage now I can not afford it what can I do?

A: If your mortgage was done as a self cert mortgage, then your income should have been checked by the mortgage advisor at the time, although it wouldn't necessarily have been passed to the lender. Also there are “fast track” mortgages available where the Loan to Value is low and the lender will allow the advisor to certify that he/she has checked the income on behalf of the lender, so again the lender wouldn’t necessarily have checked the income themselves. How long ago was this mortgage taken out? Your mortgage may be on a variable rate that has increased, your income may have reduced therefore making it less affordable. If you are struggling with the payments, it may be possible to re mortgage you to a better deal and lower our payments, or you may just need to speak to your current lender and explain the difficulties you have; they may be able to assist you. Alternatively please call one of our independent consultants on 0800 028 4040 and we may be able help you.

How does porting work? - 18/01/2010

Q: I currently have a mortgage of 188k on 95%LTV fixed rate. Our fixed rate is up in Feb 2010. We really want to move to a bigger property later in the year, however, we believe we are in negative equity by approx. £10-15k. We are currently saving and will hopefully have saved 20k by the end of the year. If we are still in negative equity at this point could we sell our flat move to a larger property and incorporate the loss into a new mortgage and pay the 20k we have saved? I know we could use the 20k to pay the lender the shortfall but that would then leave us without a deposit for a new property. I hope this makes sense. Someone told me about porting however i do not fully understand how this works.

A: Porting is when you move home and transfer your old mortgage interest rate to your new property. You can normally only do this if you are moving house. When you port your mortgage interest rate, you also carry over any Early Repayment Charges, special conditions or tie in periods that apply. Only the rate is portable, not the mortgage loan. Any new mortgage is subject to all Standard Underwriting Criteria. You would therefore need to speak to your current lender as we suspect that as you are in negative equity and will have relatively little deposit for the new property that you will no longer meet their Loan To Value (LTV) criteria. There are a few lenders who will allow you to “port” to a new property but with such a high LTV would only do so if you had to move (due to work re-location, etc) – wanting a bigger house would more than likely result in a “no” from the lender! Should you wish to discuss in detail anything with regards to the porting process or to run through some actual figures, please feel free to contact one of our independent consultants on 0800 028 4040.

Pay for cheaper rate or negotiate extended term? - 12/01/2010

Q: I have a fixed term mortgage on a property of 67.000 at the moment. The deal runs to Sept 2011 and it’s rate is 6.44%, I have just gone back to study and am struggling with the payments. The fee to get out of the deal is £1800. What is the best option, pay the get out money and get a cheaper deal or negotiate with lender to extend term or go to interest only, what would each cost long term and what is best option. i will be able to pay as before in 3 years

A: Difficult question to answer without knowing all the details. What is the value of your property? If the value is £100,000 or more then you would have a loan to value of 67% (or less), and therefore potentially there are deals around at under 2%. However, we would have to make the savings outweigh the costs of redeeming your current mortgage (£1,800), therefore as there are 21 months until your current mortgage expires, we have to make sure that you would be saving over £86 per month. Again without knowing your current payments, we would not be able to advise if this is possible. The other thing you mentioned is that you are now studying again, so how has that affected your income? As an average, you would still need an income of £15-20,000 per annum to be able to obtain a mortgage amount of £67,000 so if you aren’t earning this a remortgage may not be feasible. It would be best to approach your current lender and talk it through with them; interest only is a short term option, however you must remember that you will, in effect, be “treading water” and your mortgage balance will not be reducing during this period. Please feel free to call one of our independent consultants on 0800 028 4040 who will be able to provide a free no obligation consultation to assess your situation.

Sell house or get mortgage on my own? - 12/01/2010

Q: I currently live in a house which I rent off my dad which was bought with cash. I want to move to a bigger house. Would it be better to try and sell the house I am in and use that money or try to get a mortgage of my own?

A: Good question! Your Dad owns the house, is he going to sell it and give you the proceeds? If not, do you already have a deposit (you will need a minimum of 10% of the purchase price)? Certainly if you sell your current property and use that for the deposit, you will have far greater than a 10% deposit and therefore would be less of a risk to a lender and would possibly get a much better interest rate. Also your income and any associated debts is another factor, as most lenders will, on average, lend 4x your income minus any current debt commitments. If you want to talk through some ideas, please call us on 0800 028 4040 where one of our independent consultants will be able to assist you.