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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.
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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.
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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.
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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.
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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.
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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.
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01/12/2009
Q: We currently have a 100 %LTV fixed rate mortgage which runs out on 31st Jan 2010. Currently the company we are with are able to offer us a number of different options as we have been very lucky and our house is now worth £80k more than when we first bought it. However as we have outstanding debts we are keen to sell our house and buy a cheaper one. The mortgage company have said we can port our mortgage product to the new property and if we keep the 100%LTV we can transfer this onto the new property. However what i want to know is will they run a credit check on us as I believe our credit rating is poor at present due to the debts that we have outstanding?
A: Without knowing too much about the lender and your circumstances it would be difficult to assess. However, just because you have debts, it doesn’t necessarily mean you will have a poor credit rating. Only payments that have been missed or have been paid late will affect your score. We also assume that you intend on repaying these debts from the proceeds of the sale of the property, so your lender may still be happy to allow you to port across to the new property. It would be surprising, however, if your lender is allowing you to port the full 100% LTV as lenders that allow this are few and far between and would normally only allow this if you had to move due to special circumstances (ie job move). Of course, if you would like some fully independent mortgage advice, please feel free to call our free-phone number on 0800 028 4040, and one of our specialist will be able to talk through some options for you.
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27/10/2009
Q: I have property in Yorks which is currently worth £170,000. The mortgage has only £10,000 left to pay. I want to my leave job (voluntary redundancy) and start a new career in the South, plus purchase a house for £225,000 at same time (therefore mortgage needed would be £55,000). I will have no immediate job, but am highly skilled and flexible. How do people go about this type of relocation?
A: Obtaining a mortgage without having an income will be difficult as currently you have no way of meeting the monthly payments, however as a highly skilled worker, you should have little problems in finding a new placement and a lot of lenders will allow you to take out a mortgage straight away (especially if the new job is in the same field as previously employed). We would recommend that renting short term would be your best option (or stay with friends if possible), set yourself up with a job, looking at potential properties as you see fit, then come back to us, and as a fully independent mortgage brokerage we will be able to search the whole of market to find you the best deal for your circumstances. Alternatively if you would like to speak to an advisor, please call us on 0800 028 4040
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08/10/2009
Q: I recently changed mortgage products (in 2007) with the same company (Northern Rock). When I asked them for a payment holiday they said I only had three available. I have been with them since 1997 and assumed that I would have at least 15 holidays available (1 for every 9 months of mortgage paid). They told me this was no longer valid because I changed my product. My question is, is this correct or should I still have access to the other payment holidays that were available to me before I changed products?
A: As you have taken out a new mortgage product, you will be under the terms and conditions specific to that new product. Northern Rock’s current payment holiday terms are as follows: “Following 9 full consecutive monthly payments you may apply for a one-month mortgage payment holiday. This may be applied for once in every 12 month period following completion of your mortgage. If you choose not to take a payment holiday in any given 12 month period, you may accumulate the right to take up to a maximum of 3 payment holidays in any 12 month period”. Please also be aware that even though you may take a payment holiday, interest will still accumulate so if you miss 3 consecutive payments your mortgage balance will increase potentially by quite a lot, dependant on your original balance. Of course, if you wish to talk anything over with an independent mortgage specialist, please feel free to call us on 0800 028 4040, and we can also give you a free review of any life and mortgage protection policies you may have in place.
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01/10/2009
Q: I am separated from my husband of 21 yrs and still live in our marital home with my three children. At present the mortgage is still in joint names and I want to take it on to disassociate myself from him, but since the separation I have got myself into some financial difficulty falling behind on loan and credit card repayments. I was coping well until the last few months. My ex- husband is unaware of this. The mortgage repayment has never been missed and there is a lot of equity in the property. Currently outstanding on the mortgage is £58000 and the property was valued at £325000 about three months ago. I wondered if it was possible to borrow extra on top of the outstanding mortgage to clear my debt and make it into a single mortgage payment. I am employed full time and my ex husband is giving some financial support and all credit cards have been destroyed.
A: In essence, yes it would be possible to consolidate your existing debts into one monthly mortgage payment. However, what you would need to take into account is your salary; would a lender lend you the funds to consolidate? You don’t mention how much these debts are, therefore without knowing how much of a “new” mortgage you will be taking on, we can’t really comment on whether a lender would oblige or not. Also, would your husband approve of you taking the mortgage out on your own, and him leaving his part of the equity in the property? Would there not be a stage where he would need funds to purchase a property himself? Please feel free to give one of our independent specialists a call on 0800 028 4040 who would then be able to talk through some ideas and advise accordingly.
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