The Lemon Fool

Hi all, and thanks in advance for any responses.

My fix rate will end in November or so, and I'd like to borrow more for lease extension, kitchen and bath remodelling, and debt consolidation (adding all credit card debt to the mortgage). Please let me know if Barclays is an option for me for remortgaging - will I pass affordability to get their 1.75% 5-year fix rate? Are there any other options? Or better options? I might be going through a broker, but would like to try my luck with Barclays first. I was also looking at Santander and Tesco. My details:

Current mortgage: £183K left with Halifax at 2.34%, rate expiring in 2-3 months, 19 years left. Monthly repayments: £1000
Property: 2-bedroom leasehold flat (ex-authority building, at least 55% of flats privately owned, 3 floors). 90 years left on lease.

Single applicant, with one dependent 9-yr old child
£42K salary
£5.2K annual bonus (P60s, payslip)
£6K child maintenance (bank statements available; informal agreement only - no CSA/court order)
£1K child benefit (bank statements, letter from hmrc)

Monthly outgoings:
£102 council tax
£80 service charge
£300 childcare
£125 monthly travelcard

Debt & credit history:
one credit card approx £10K now (to be added to the mortgage)
no student loans and no other debt
on electoral roll, no missed payments

New mortgage:
Desired mortgage: repayment mortgage £215000, 25-year term. New LTV ~ 55%.
Santander 1.75% fix rate for 5-yr means less than £900 monthly repayments; I would like to overpay approx £300 each month (because I'm extending the term and I'm adding debt to the mortgage).

THANK YOU!

How old are you?

You'd be needing to list ALL your monthly outgoings, at least for S'der, they asked me down to how much loo roll I used a week!

Mel

I'm going to be 42 at the time of remortgage, I'm looking for a 20-25 yr term, the lowest I can afford.

From what I understand, some lenders don't ask for so much detail, they will assume averages for utilities, food, etc.

They only need to know childcare/school fees, council tax, service charges (if any), and travel/transportation costs. And obviously about debts - credit cards and loans.

moneygal wrote:I'm going to be 42 at the time of remortgage, I'm looking for a 20-25 yr term, the lowest I can afford.

From what I understand, some lenders don't ask for so much detail, they will assume averages for utilities, food, etc.

They only need to know childcare/school fees, council tax, service charges (if any), and travel/transportation costs. And obviously about debts - credit cards and loans.

How far have you got now, considering the first post was a few weeks ago?

Mel

I've been travelling so I have not done anything yet... I really need to know whether I should try my luck directly with Barclays (am I a difficult case?) or just go straight to a broker.

I don't think anyone here can really tell you.

Personally I loathe Barclays so it wouldn't be my choice to start there. They may well have extra criteria for that loan that we don't know about.

Presumably you've gone through this?

https://www.barclays.co.uk/mortgages/fi ... -mortgage/

And this tells you what they will need:

https://www.barclays.co.uk/mortgages/appointment/

It is likely that a broker won't offer this mortgage so if it's the one you're interested in then you need to approach Barclays. Maybe you could ask for an overview of whether you're eligible before they go through the full application - it's better you don't get turned down as that leaves a footprint on your credit record.

A broker on the other hand can do a 'soft check' on your credit record which wouldn't leave a record.

Mel

I think you may struggle to get approval for quite so big a mortgage on those figures to be honest. Putting your figures into a simple form at http://www.nationwide.co.uk/products/mortgages/our-mortgages/mortgage-calculators/mortgage-quick-quote gets you about £200k, but only if the child support counts. Most banks would not deem it as secure income unless it is under a court order or CSA mandate unfortunately. I second mel's advice to go via a broker for your slightly awkward circumstances.

Thank you. Barclays counts child maintenance as income as long as it's supported by 12 months worth of statements. However, they don't take annual bonus into consideration, unless it's higher than 10K (which is odd).

Thanks all, will contact a broker... looks like my case isn't as simple.